The Inventories Disclosure Note in the 2014 Financial Statements for SUPERVALU

question 102

Essay

The inventories disclosure note in the 2014 financial statements for SUPERVALU Inc., one of the largest grocery chains in the United States, included the following ($ in millions):

"Inventories are valued at the lower of cost or market. Substantially all of the Company's inventory consists of finished goods. As of February 22, 2014 and February 23, 2013, approximately 57 percent and 60 percent, respectively, of the Company's inventories were valued under the LIFO method. If the FIFO method had been used to determine cost of inventories for which the LIFO method is used, the Company's inventories would have been higher by approximately $202 and $211 as of February 22, 2014 and February 23, 2013, respectively."
Cost of goods sold for the fiscal year ended February 22, 2014 was $14,623 million.
Required:
If SUPERVALU had used FIFO for all of its LIFO inventories, what would its cost of goods sold have been for 2014?

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Definitions:

Range

The difference between the highest and lowest values in a data set, showing the spread or dispersion of the data points.

Range

The gap between the maximum and minimum values within a set of data.

Standard Deviation

A metric for evaluating the degree of spread or deviation in a collection of data points.

Bimodal

A frequency distribution having two different values that are most commonly observed or two peaks.