Question

Problem 9-10 Dollar-value LIFO retail method [L09-51 Smith-Kline Compan y maintains inventory records at selling prices as well as at cost For 2018, the records indicate the following data Cost Retail 99 $165 684 887 inning Freight-in on purchases Net markups Net markdowns Net sales Required Assuming the price level increased from 1 at January 1 to 1.60 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. (Do not round intermediate calculations. Round final answers to the nearest whole doller. Enter your answers in thousands.) in Estimated ending inventory at cost Estimated cost of goods sold

Answer 1

Ending inventory and cost of goods sold S in 000s Cost Retail 3 Beginning inventory 4 Add: Net purchases 5 Add: Net markups 6 Less: Net markdowns $99 $704 $165 $884 $5 ($9) Goods available for sale (excluding 7 beginning inventory) $704 $880 Goods available for sale (including 8 be nvento $803$1.045 10 Base year cost-to-retail percentage 11 2013 cost to retail 12 Cost index 13 14 Less: Net sales 0.60 0.80 1.6 ($770) Estimated ending inventory at 15 current year retail prices 16 $275 Estimated ending inventory at 17 cost 18 Estimated cost of goods sold 19 20 S108 S695 Step 1 Ending Step 2 Step 3 Inventory Inventory Ending Inventory at Year-endBase YearBase Year Converted $99 Inventory at Lavers atLavers 21 Ratail Prices Retail Prices Retail Prices to Cost $275 $172 $165 $7 23 $9 Total ending inventory at dollar- 24 value LIFO retail cost $108