Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021,...
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Accounting
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. (Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be 12.55.)
2. Use the retail method to approximate cost of ending inventory valued under Conventional method. (Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be 12.55)
Ending inventory ($ in 000s) Average cost Ending inventory ($ in 000s) Conventional
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