Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, 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 $ 90 $ 135 681 1,016 40 2 3 3596 5 9 926
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, 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 $ 90 $ 135 681 1,016 40 2 3 3596 5 9 926
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the records indicate the
following data:
Beginning inventory
Purchases
Freight-in on purchases
Purchase returns
Net markups
Net markdowns
Net sales
Average cost
($ in 000s)
Cost Retail
$90 $ 135
681
1,016
40
Ending inventory
($ in 000s)
2
Required:
1. Use the retail method to approximate cost of ending inventory valued under Average cost method. (Enter your answer in thousands
including 2 decimal places, i.e. 12,550 would be 12.55.)
3
5
9
926](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2add2073-e493-4d8e-b5ad-5a4b19fe039f%2Ff9060ad6-ef71-484e-ad49-85c2db5016a9%2Fp10tzho_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the records indicate the
following data:
Beginning inventory
Purchases
Freight-in on purchases
Purchase returns
Net markups
Net markdowns
Net sales
Average cost
($ in 000s)
Cost Retail
$90 $ 135
681
1,016
40
Ending inventory
($ in 000s)
2
Required:
1. Use the retail method to approximate cost of ending inventory valued under Average cost method. (Enter your answer in thousands
including 2 decimal places, i.e. 12,550 would be 12.55.)
3
5
9
926
Transcribed Image Text:. Use the retail method to approximate cost of ending inventory valued under Conventional method. (Enter your answer in
thousands including 2 decimal places, i.e. 12,550 would be 12.55)
Conventional
Ending inventory
($ in 000s)
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