Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: Beginning inventory Purchases Freight-in on purchases Purchase returns Net markups Net markdowns Net sales ($ in thousands) Cost $ 71 662 21 2 Retail $116 997 3 5 9 907 Required: 1. Use the retail method to approximate cost of ending inventory valued under average cost method. Note: Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be 12.55.
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: Beginning inventory Purchases Freight-in on purchases Purchase returns Net markups Net markdowns Net sales ($ in thousands) Cost $ 71 662 21 2 Retail $116 997 3 5 9 907 Required: 1. Use the retail method to approximate cost of ending inventory valued under average cost method. Note: Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be 12.55.
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 7DQ: Using the following data, how should the inventory be valued under lower of cost or market? Original...
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![Required information
[The following information applies to the questions displayed below.]
Smith-Kline Company maintains inventory records at selling prices as well as
at cost. For 2024, the records indicate the following data:
Beginning inventory
Purchases
Freight-in on purchases
Purchase returns
Net markups
Net markdowns
Net sales
($ in thousands)
Cost
$ 71
662
21
2
Average cost
Retail
$116
997
Ending inventory
($ in 000s)
3597
Required:
1. Use the retail method to approximate cost of ending inventory valued under average cost
method.
907
Note: Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be
12.55.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2F17693288-818b-47e1-b78d-336c0a5024d5%2F2r4yh7_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 2024, the records indicate the following data:
Beginning inventory
Purchases
Freight-in on purchases
Purchase returns
Net markups
Net markdowns
Net sales
($ in thousands)
Cost
$ 71
662
21
2
Average cost
Retail
$116
997
Ending inventory
($ in 000s)
3597
Required:
1. Use the retail method to approximate cost of ending inventory valued under average cost
method.
907
Note: Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be
12.55.
Transcribed Image Text:2. Use the retail method to approximate cost of ending inventory valued under conventional
method.
Note: 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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