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The Gap, Inc., is a specialty retailer that operates stores selling clothes under the trade names Gap, Banana Republic, and Old Navy. Assume that you are employed as a stock analyst and your boss has just completed a review of the annual report of The Gap, Inc., for the third quarter of 2013. She provided you with her notes, but they are missing some information that you need. Her notes show that the inventory for Gap was $ 2.4 billion at the end of the quarter and $ 1.8 billion at the beginning of the quarter. Net Sales for the quarter were $ 4.0 billion. Gross Profit was $ 1.6 billion and Net Income was $ 330 million.
Required:
Determine the Cost of Goods Sold and purchases for the third quarter.
The FIFO method in costing its raw material inventory
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