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Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022 Available information follows: a. The inventory at January 1, 2022, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $ 570,000 Retail $ 953,090 6,000 4,600 5,000 958,000 5,000 3,000 20,000 20,000 4,800 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 41%, and the appropriate price index was 110% of the January 1, 2023, price level. Required: 2 Estimate ending inventory for 2022 assuming Raleigh Department Store used the LIFO retail method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory al cost Cost Retail Cost-to-Retail Ratio

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022 Available information follows: a. The inventory at January 1, 2022, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $ 570,000 Retail $ 953,090 6,000 4,600 5,000 958,000 5,000 3,000 20,000 20,000 4,800 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 41%, and the appropriate price index was 110% of the January 1, 2023, price level. Required: 2 Estimate ending inventory for 2022 assuming Raleigh Department Store used the LIFO retail method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory al cost Cost Retail Cost-to-Retail Ratio

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022 Available information follows: a. The inventory at January 1, 2022, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $ 570,000 Retail $ 953,090 6,000 4,600 5,000 958,000 5,000 3,000 20,000 20,000 4,800 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 41%, and the appropriate price index was 110% of the January 1, 2023, price level. Required: 2 Estimate ending inventory for 2022 assuming Raleigh Department Store used the LIFO retail method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory al cost Cost Retail Cost-to-Retail Ratio
Transcribed Image Text:Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022 Available information follows: a. The inventory at January 1, 2022, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $ 570,000 Retail $ 953,090 6,000 4,600 5,000 958,000 5,000 3,000 20,000 20,000 4,800 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 41%, and the appropriate price index was 110% of the January 1, 2023, price level. Required: 2 Estimate ending inventory for 2022 assuming Raleigh Department Store used the LIFO retail method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory al cost Cost Retail Cost-to-Retail Ratio
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