Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2016, the records indicate the following data: ($ in 000s)
Cost Retail
Beginning inventory $40 $80
Purchases 726 947
Freight-in on purchases 27
Purchase returns 1 3
Net markups 5
Net markdowns 9
Net sales 813
Required:
Assuming the price level increased from 1 at January 1 to 1.75 at December 31, 2016, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. (Enter your answers in thousands.
1.Estimated Ending inventory at retail
2.Estimated ending inventory at cost
3.Estimated cost of goods sold