Cat Incorporated manufactures machinery and engines for the construction, agriculture, and forestry industries. It follows U.S. GAAP and reports its results in millions of U.S. dollars ($). For the year ended December 31, 2013, it reported LIFO inventories of $7,204 million, compared to $6,351 million as of December 31, 2012. Cat’s cost of goods sold for 2013 was $32,626 million. Cat reports in the notes to its 2013 financial statements that inventories would have been $2,617 million higher as of December 31, 2013, had it used the FIFO cost-flow assumption, and $2,403 million higher as of December 31, 2012. Compute Cat’s cost of goods sold for 2013 if the firm had used FIFO instead of LIFO.
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