In 20X2, Landings, Inc. provided the following items in their footnotes. Their cost of goods available for sale was $4.5 billion under FIFO costing and their ending inventory value under FIFO costing was $2.1 billion. Their purchases were $4.1 billion. What was their opening inventory?

Question

Quizplus · Accepted Answer

The cost of goods available for sale is the sum of the opening inventory and purchases. Given that the cost of goods available for sale is $4.5 billion and purchases are $4.1 billion, the opening inventory is $4.5 billion - $4.1 billion = $0.4 billion.