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 Beginning inventory Cost $ 323,040 6,300 5,400 28,500 Sales Sales returns Sales to employees are recorded net of discounts. c. The retail value of the December 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. Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage Less: Net sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Retail $ 530,000 14,000 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. 509,500 10,000 5,000 29,000 14,000 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 $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 Beginning inventory Cost $ 323,040 6,300 5,400 28,500 Sales Sales returns Sales to employees are recorded net of discounts. c. The retail value of the December 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. Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage Less: Net sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Retail $ 530,000 14,000 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. 509,500 10,000 5,000 29,000 14,000 Cost Retail Cost-to-Retail Ratio
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...
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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 $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
Beginning inventory
28,500
Sales
Sales returns
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost
Retail
$530,000
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.
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Cost-to-retail percentage
Less: Net sales
509,500
10,000
5,000
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.
29,000
14,000
Cost
Retail
Cost-to-Retail
Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f39f696-5201-41e6-8006-f350a0900d53%2Fdab0f8e8-a0ff-45b3-b438-877fbd09c31e%2Fnbs18t_processed.jpeg&w=3840&q=75)
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
Beginning inventory
28,500
Sales
Sales returns
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost
Retail
$530,000
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.
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Cost-to-retail percentage
Less: Net sales
509,500
10,000
5,000
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.
29,000
14,000
Cost
Retail
Cost-to-Retail
Ratio
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