Smith-Kline Company maintains inventory records at selling prices as well as at

Question

Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2013, the records indicate the following data:

Use the retail method to approximate cost of ending inventory in each of the following ways (Round your final answers to 2 decimal places. Enter your answers in thousands.):

Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2013, the records indicate the following data:

Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2013, the records indicate the following data: Assuming the price level increased from 1.2 at January 1 to 1.55 at December 31, 2013, use the dollar-value LIFO retail method to calculate the approximate cost of ending inventory and cost of goods sold.(Enter your answers in thousands.)

Explanation / Answer

(Amount $ in 000s) Paticulars Cost Retail Beginning inventory $72,000 $117,000 Add: Purchases 663,000 998,000 $735,000 $1,115,000 Freight in on purchases 22,000 Less: Purchase Returns 1,000 Add: Mark ups 4,000 Less: Markdowns (8,000) Net sales $756,000 $1,111,000 1. The average cost is computed by dividing the cost of goods available for sale by the units on hand. 2. LCM(Lower-in Cost method) at cost $756,000 is lower than $1,111,000

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