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 $49,000 and a cost of $34,380 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 $ 323,040 Retail $ 530,000 6,300 5,400 14,000 509,500 10,000 5,000 28,500 29,000 14,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $85,330, the cost-to-retail percentage for 2023 under the LIFO retail method was 69%, and the appropriate price index was 106% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,320, the cost-to-retail percentage for 2024 under the LIFO retail method was 68%, and the appropriate price index was 109% of the January 1, 2023, price level. quired: Estimate ending inventory for 2022 using the conventional retail method. te: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation cimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.
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 $49,000 and a cost of $34,380 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 $ 323,040 Retail $ 530,000 6,300 5,400 14,000 509,500 10,000 5,000 28,500 29,000 14,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $85,330, the cost-to-retail percentage for 2023 under the LIFO retail method was 69%, and the appropriate price index was 106% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,320, the cost-to-retail percentage for 2024 under the LIFO retail method was 68%, and the appropriate price index was 109% of the January 1, 2023, price level. quired: Estimate ending inventory for 2022 using the conventional retail method. te: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation cimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $49,000 and a cost of $34,380 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
$ 323,040
6,300
5,400
Retail
$ 530,000
14,000
509,500
10,000
5,000
28,500
29,000
14,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $85,330, the cost-to-retail percentage for 2023 under
the LIFO retail method was 69%, and the appropriate price index was 106% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $52,320, the cost-to-retail percentage for 2024 under
the LIFO retail method was 68%, and the appropriate price index was 109% of the January 1, 2023, price level.
Required:
1. Estimate ending inventory for 2022 using the conventional 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
Cost-to-Retail
Cost
Retail
Ratio
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