Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data: Beginning inventory Purchases Freight-in on purchases. Purchase returns Net markups Net markdowns Net sales ($ in 000s) Cost Retail $ 77 $ 140 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 682 1,026 33 1 2 4 8 919 Required: Assuming the price level increased from 1 at January 1 to 1.25 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. (Do not round intermediate calculations. Round final answers to the nearest whole dollar. Enter your answers in thousands.) ($ in 000s)
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data: Beginning inventory Purchases Freight-in on purchases. Purchase returns Net markups Net markdowns Net sales ($ in 000s) Cost Retail $ 77 $ 140 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 682 1,026 33 1 2 4 8 919 Required: Assuming the price level increased from 1 at January 1 to 1.25 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. (Do not round intermediate calculations. Round final answers to the nearest whole dollar. Enter your answers in thousands.) ($ in 000s)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Smith-Kline Company maintains
inventory records at selling prices as
well as at cost. For 2018, the records
indicate the following data:
Beginning inventory
Purchases
Freight-in on purchases.
Purchase returns.
Net markups
Net markdowns
Net sales
($ in 000s)
Cost Retail
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$ 77 $ 140
682 1,026
33
1
2
4
8
919
Required:
Assuming the price level increased from 1 at January 1 to 1.25 at December 31, 2018, use the dollar-value LIFO retail method to
approximate cost of ending inventory and cost of goods sold. (Do not round intermediate calculations. Round final answers to the
nearest whole dollar. Enter your answers in thousands.)
($ in 000s)
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