Question
AmerisourceBergen is an American drug wholesale company. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The
AmerisourceBergen is an American drug wholesale company. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following information was included in a recent annual report: Inventories are comprised of the following ($ in millions):
September 30, 2017 | September 30, 2016 | ||||||||
Inventories (under FIFO) | $ | 13,228 | $ | 26,456 | |||||
Less: LIFO reserve | (1,500 | ) | (1,666 | ) | |||||
Inventories (under LIFO) | $ | 11,728 | $ | 24,790 | |||||
The companys income statements reported cost of goods sold of $148,898 million for the year ended September 30, 2017. Required: 1. Prepare the September 30, 2017, adjusting entry to record the cost of goods sold adjustment. 2. If AmerisourceBergen had used FIFO to report its inventories, what would cost of goods sold have been for the quarter ended September 30, 2017?
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