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 $41,000 and a cost of $32.170 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales Salam Cost $ 224,310 6,100 4,600 Retail $450,000 24,000 400,500
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 $41,000 and a cost of $32.170 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales Salam Cost $ 224,310 6,100 4,600 Retail $450,000 24,000 400,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $41,000 and a cost of $32,170 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
Cost
$ 224,310
6,100
4,600
27,500
Retail
$ 450,000
24,000
400,500
5,000
5,500
Net markups
Net markdowns
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, Inventory was $59,800, the cost-to-retail percentage for 2023 under the
LIFO retail method was 74%, and the appropriate price index was 104% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $47,080, the cost-to-retail percentage for 2024 under the
LIFO retail method was 73%, and the appropriate price index was 107% of the January 1, 2023, price level.
21,000
24,000
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 (.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%2F567e3a3e-d0fb-49e0-903a-334d72aa92be%2F037e524d-1c62-4418-b93b-6ea9e73054be%2Fwa68sg_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 $41,000 and a cost of $32,170 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
Cost
$ 224,310
6,100
4,600
27,500
Retail
$ 450,000
24,000
400,500
5,000
5,500
Net markups
Net markdowns
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, Inventory was $59,800, the cost-to-retail percentage for 2023 under the
LIFO retail method was 74%, and the appropriate price index was 104% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $47,080, the cost-to-retail percentage for 2024 under the
LIFO retail method was 73%, and the appropriate price index was 107% of the January 1, 2023, price level.
21,000
24,000
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 (.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.
Transcribed Image Text:Required information
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
Goods available for sale.
Cost-to-retail percentage
Less: Net sales
Sales
Sales returns
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost
Cost
Retail
Cost-to-Retail
Ratio
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