In 20B,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 itspurchases?
A)$3.7 billion
B)$4.1 billion
C)$4.6 billion
D)$8.3 billion

Question

Quizplus · Accepted Answer

The purchases can be calculated using the formula: Cost of Goods Available for Sale = Opening Inventory + Purchases. Rearranging gives Purchases = Cost of Goods Available for Sale - Opening Inventory. So, Purchases = $6.2 billion - $2.5 billion = $3.7 billion.