Chapter 15, Problem 15.2E

Federal Way, Incorporated, is a major department store chain. The dominant portion of the company's business consists of providing merchandise and services to consumers through department stores and online. In a prior annual report, Federal Way reported cost of goods sold of $11,577 million, ending inventory for the current year of $3,262 million, and ending inventory for the previous year of $3,636 million. Required: Develop a reasonable estimate of the merchandise purchases for the year. Note: Enter your answers in millions. Purchases million million million million

account answer need

Travis Company has just completed a physical inventory count at year-end, December 31 of the current year. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $66,600. During the audit, the independent CPA developed the following additional information: a. Goods costing $820 were being used by a customer on a trial basis and were excluded from the inventory count at December 31 of the current year. b. Goods in transit on December 31 of the current year, from a supplier, with terms FOB destination (explained in the "Required" section), cost $1,650. Because these goods had not yet arrived, they were excluded from the physical inventory count. c. On December 31 of the current year, goods in transit to customers, with terms FOB shipping point, amounted to $2,600 (expected delivery date January 10 of next year). Because the goods had been shipped, they were excluded from the physical inventory count. d. On…