Question

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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. (Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be 12.55.)

Answer 1