Chapter 9, Problem 9.10P

Dollar-value LIFO retail method

• LO9–5

[This is a variation of P 9–9, modified to focus on the dollar-value LIFO retail method.] Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data:

	($ in thousands)
	Cost	Retail
Beginning inventory	$ 80	$ 125
Purchases	671	1,006
Freight-in on purchases	30
Purchase returns	1	2
Net markups		4
Net markdowns		8
Net sales		916

Required:

Assuming the price level increased from 1.00 at January 1 to 1.10 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold.