In 20X2, Landings Inc. provided the following items in their footnotes. Its cost of goods available for sale was $6.2 billion under FIFO costing and its ending inventory value under FIFO costing was $2.1 billion. Its opening inventory was $2.5 billion. What was its purchases?

Question

Quizplus · Accepted Answer

The cost of goods available for sale is calculated as opening inventory plus purchases. Given the cost of goods available for sale is $6.2 billion and the opening inventory is $2.5 billion, the purchases can be calculated as $6.2 billion - $2.5 billion = $3.7 billion.