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 $ 87 $ 132 1,013 678 37 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.) Ending inventory ($ in 000s) 3 5 9 923
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 $ 87 $ 132 1,013 678 37 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.) Ending inventory ($ in 000s) 3 5 9 923
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
$87 $132
678 1,013
37
2
Required:
1. Use the retail method to approximate cost of ending inventory valued under Average cost method. (Enter your answer in thousands
including 2 decimal places, i.e. 12,550 would be 12.55.)
Ending inventory
($ in 000s)
3
5
9
923](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3767972f-3214-400b-8b16-9d53654b165b%2Fa641e98e-3fb0-45a0-bf98-a3365c35762e%2Fu4jiao_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
$87 $132
678 1,013
37
2
Required:
1. Use the retail method to approximate cost of ending inventory valued under Average cost method. (Enter your answer in thousands
including 2 decimal places, i.e. 12,550 would be 12.55.)
Ending inventory
($ in 000s)
3
5
9
923
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