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Required information [The following information applies to the questions displayed below.] 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 $51,000 and a cost of $38,060 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $344,940 Retail $550,000 6,500 16,000 Purchase discounts 5,600 Sales 544,000 Sales returns 5,000 Employee discounts 6,000 Freight-in 29,500 Net markups Net markdowns 31,000 16,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the LIFO retail method was 75%, and the appropriate price index was 102% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $51,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 74 %, and the appropriate price index was 105% of the January 1, 2023, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for 2023 and 2024. Note: 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. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024

Required information [The following information applies to the questions displayed below.] 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 $51,000 and a cost of $38,060 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $344,940 Retail $550,000 6,500 16,000 Purchase discounts 5,600 Sales 544,000 Sales returns 5,000 Employee discounts 6,000 Freight-in 29,500 Net markups Net markdowns 31,000 16,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the LIFO retail method was 75%, and the appropriate price index was 102% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $51,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 74 %, and the appropriate price index was 105% of the January 1, 2023, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for 2023 and 2024. Note: 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. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024

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 58E: Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following...
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Required information [The following information applies to the questions displayed below.] 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 $51,000 and a cost of $38,060 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $ 344,940 Retail $ 550,000 Purchase discounts 6,500 5,600 16,000 Sales 544,000 Sales returns 5,000 Employee discounts 5,000 Freight-in 29,500 Net markups Net markdowns 31,000 16,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the LIFO retail method was 75%, and the appropriate price index was 102% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $51,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 74%, and the appropriate price index was 105% of the January 1, 2023, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for 2023 and 2024. Note: 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. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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 $51,000 and a cost of $38,060 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $ 344,940 Retail $ 550,000 Purchase discounts 6,500 5,600 16,000 Sales 544,000 Sales returns 5,000 Employee discounts 5,000 Freight-in 29,500 Net markups Net markdowns 31,000 16,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the LIFO retail method was 75%, and the appropriate price index was 102% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $51,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 74%, and the appropriate price index was 105% of the January 1, 2023, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for 2023 and 2024. Note: 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. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024
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