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 $50,000 and a cost of $36,200 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 $ 333,900 6,400 5,500 29,000 Retail $ 540,000 15,000 500,000 8,000 5,500 30,000 15,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $104,325, the cost-to-retail percentage for 2023 under the LIFO retail method was 70%, 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 $53,350, the cost-to-retail percentage for 2024 under the LIFO retail method was 69%, and the appropriate price index was 110% of the January 1, 2023, price level. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024 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.
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 $50,000 and a cost of $36,200 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 $ 333,900 6,400 5,500 29,000 Retail $ 540,000 15,000 500,000 8,000 5,500 30,000 15,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $104,325, the cost-to-retail percentage for 2023 under the LIFO retail method was 70%, 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 $53,350, the cost-to-retail percentage for 2024 under the LIFO retail method was 69%, and the appropriate price index was 110% of the January 1, 2023, price level. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for 2023 and 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 $50,000 and a cost of $36,200 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
$ 333,900
6,400
5,500
29,000
Retail
$ 540,000
15,000
500,000
8,000
5,500
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024
30,000
15,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $104,325, the cost-to-retail percentage for 2023 under the
LIFO retail method was 70%, 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 $53,350, the cost-to-retail percentage for 2024 under the
LIFO retail method was 69%, and the appropriate price index was 110% 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F969dc51c-cfbc-4a88-8223-4a4d6f7856c4%2F02bc5e7d-4c00-4d32-a58c-e1920605c5a2%2Fooddide_processed.jpeg&w=3840&q=75)
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 $50,000 and a cost of $36,200 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
$ 333,900
6,400
5,500
29,000
Retail
$ 540,000
15,000
500,000
8,000
5,500
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024
30,000
15,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $104,325, the cost-to-retail percentage for 2023 under the
LIFO retail method was 70%, 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 $53,350, the cost-to-retail percentage for 2024 under the
LIFO retail method was 69%, and the appropriate price index was 110% 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.
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