Question

Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the...

Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data:

($ in 000s)
Cost Retail
Beginning inventory $ 85 $ 130
Purchases 676 1,011
Freight-in on purchases 35
Purchase returns 1 2
Net markups 3
Net markdowns 7
Net sales 921


Required:
Use the retail method to approximate cost of ending inventory in each of the following ways: (Enter your answers in thousands. Round your cost-to-retail percentage calculation and final answers to 2 decimal places.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the...
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data: ($ in 000s) Cost Retail Beginning inventory $ 86 $ 131 Purchases 677 1,012 Freight-in on purchases 36 Purchase returns 1 2 Net markups 4 Net markdowns 8 Net sales 922 Required: Use the retail method to approximate cost of ending inventory in each of the following ways: (Enter your answers in thousands. Round your cost-to-retail percentage calculation and...
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the...
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data. ($ in 000s) Cost Retail Beginning Inventory $112 $160 Purchases $812 $1067 Freight- in on purch. 37 Purchase returns 1 3 Net markups 5 Net markdowns 9 net sales 923 Required: Assuming the price level increased from 1 at January 1 to 1.45 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory...
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the...
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the records indicate the following data: ($ in 000s) Cost Retail Beginning inventory $ 83 $ 128 Purchases 674 1,009 Freight-in on purchases 33 Purchase returns 1 2 Net markups 4 Net markdowns 8 Net sales 919 Required: 1. Use the retail method to approximate cost of ending inventory valued under Average cost method.
Required information [The following information applies to the questions displayed below.] Smith-Kline Company maintains inventory records...
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: ($ in 000s) Cost Retail Beginning inventory $ 88 $ 133 Purchases 679 1,014 Freight-in on purchases 38 Purchase returns 1 2 Net markups 3 Net markdowns 7 Net sales 924 Required: 1. Use the retail method to approximate cost of ending inventory valued under Average cost method....
Black Company maintains inventory records at selling prices as well as at cost. For 2021, the...
Black Company maintains inventory records at selling prices as well as at cost. For 2021, the records indicate the following data: ($ in 000s) Cost Retail Beginning inventory $ 105 $ 175 Purchases 833 1,097 Freight-in on purchases 40 Purchase returns 1 3 Net markups 5 Net markdowns 9 Net sales 926 Required: Assuming the price level increased from 1.00 at January 1 to 1.60 at December 31, 2021, use the dollar-value LIFO retail method to approximate cost of ending...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Cost Retail Beginning inventory $ 53,250 $ 71,000 Net purchases 206,590 285,000 Net markups 9,000 Net markdowns 11,000 Net sales 268,000 Retail price index, end of year 1.04 During 2019, purchases at cost and retail were $233,135 and $333,050, respectively. Net markups, net markdowns, and net sales for the year were $6,000, $7,000, and $295,000, respectively. The retail price index...
Campbell Corporation uses the retail method to value its inventory. The following information is available for...
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2018: Cost Retail Merchandise inventory, January 1, 2018 $ 250,000 $ 286,000 Purchases 672,000 888,000 Freight-in 14,000 Net markups 26,000 Net markdowns 4,500 Net sales 860,000 Required: Determine the December 31, 2018, inventory by applying the conventional retail method. Cost Retail Cost-to-Retail Ratio Beginning inventory Plus: Purchases Freight-in Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales...
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold....
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows: Cost Retail Beginning inventory $ 97,000 $ 187,000 Purchases 363,000 587,000 Freight-in 9,700 Purchase returns 7,700 11,700 Net markups 16,700 Net markdowns 12,700 Normal spoilage 3,700 Abnormal spoilage 5,546 8,700 Sales 547,000 Sales returns 10,700 The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,700. Required: 2. Estimate Sparrow’s ending inventory and cost of...
Windsor Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements....
Windsor Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018. Inventory, October 1, 2018     At cost $52,700     At retail 77,400 Purchases (exclusive of freight and returns)     At cost 306,656     At retail 430,500 Freight-in 16,500 Purchase returns     At cost 5,600     At retail 8,000 Markups 9,200 Markup cancellations 1,900 Markdowns (net) 3,700 Normal spoilage and breakage 10,000 Sales revenue 394,500 What is...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Cost Retail Beginning inventory $ 52,500 $ 75,000 Net purchases 206,040 305,000 Net markups 7,000 Net markdowns 9,000 Net sales 282,000 Retail price index, end of year 1.04 Estimate ending inventory using the dollar-value LIFO retail method.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT