Raleigh Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2014, and is now considering converting to the dollar-value LIFO retail inventory method. Management requested, during your examination of the financial statements for the year ended December 31, 2016, that you furnish a summary showing certain computations of inventory costs for the past three years. Available information follows20162017 CostRetailCostRetail Beginning inventory$35,000 $50,000 Net purchases 89,750 113,000 $96,525 $118,700 Freight-in 2,500 3,000 Net markups 12,500 9,000 Net markdowns 2,500 2,700 Net sales to customers 109,890 104,260 Sales to employees (net of 20% discount) 3,000 4,800 Price Index: January 1, 2016 1.00 December 31, 2016 1.06 December 31, 2017 1.14 Required:Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Round your cost-to-retail percentage calculations to 2 decimal places.)please answer do not image format

Name: Raleigh Department Store converted from the conventional retail method
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Description: Raleigh Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2014, and is now considering converting to the dollar-value LIFO retail inventory method. Management requested, during your examination of

Under this method the ending inventory value is calculated by totaling the value of goods that are…

Answered: Raleigh Department Store converted from…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Raleigh Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2014, and is now considering converting to the dollar-value LIFO retail inventory method. Management requested, during your examination of the financial statements for the year ended December 31, 2016, that you furnish a summary showing certain computations of inventory costs for the past three years. Available information follows

2016	2017

	Cost	Retail	Cost	Retail
Beginning inventory	$	35,000		$	50,000
Net purchases		89,750			113,000	$	96,525	$	118,700
Freight-in		2,500					3,000
Net markups					12,500				9,000
Net markdowns					2,500				2,700
Net sales to customers					109,890				104,260
Sales to employees (net of 20% discount)					3,000				4,800
Price Index:
January 1, 2016									1.00
December 31, 2016									1.06
December 31, 2017									1.14

Required:

Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Round your cost-to-retail percentage calculations to 2 decimal places.)

please answer do not image format

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