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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 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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.
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.
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
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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