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 $45,000 and a cost of $27,500 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 $ 282,000 Retail $ 490,000 6,500 10,000 5,000 492,000 5,000 3,000 26,500 25,000 10,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $56,100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62%, and the appropriate price index was 102% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $48,300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61%, and the appropriate price index was 105% 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. Answer is complete but not entirely correct. Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups Less: Net markdowns 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 $ 27,500 $ 45,000 282,000 490,000 26,500 0 (6,500) (10,000) ( 5,000 0 0 25,000 0 0 550,000 $ 324,500 10,000 540,000 59.00% $ 492,000 5,000 3,000 6,000 $ 50,000 $ 29,500
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 $45,000 and a cost of $27,500 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 $ 282,000 Retail $ 490,000 6,500 10,000 5,000 492,000 5,000 3,000 26,500 25,000 10,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $56,100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62%, and the appropriate price index was 102% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $48,300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61%, and the appropriate price index was 105% 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. Answer is complete but not entirely correct. Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups Less: Net markdowns 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 $ 27,500 $ 45,000 282,000 490,000 26,500 0 (6,500) (10,000) ( 5,000 0 0 25,000 0 0 550,000 $ 324,500 10,000 540,000 59.00% $ 492,000 5,000 3,000 6,000 $ 50,000 $ 29,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hanshaben
![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 $45,000 and a cost of $27,500 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
$ 282,000
Retail
$ 490,000
6,500
10,000
5,000
492,000
5,000
3,000
26,500
25,000
10,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $56,100, the cost-to-retail percentage for 2023 under the
LIFO retail method was 62%, and the appropriate price index was 102% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $48,300, the cost-to-retail percentage for 2024 under the
LIFO retail method was 61%, and the appropriate price index was 105% 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.
Answer is complete but not entirely correct.
Beginning inventory
Add: Purchases
Add: Freight-in
Less: Purchase returns
Less: Purchase discounts
Add: Net markups
Less: Net markdowns
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
$
27,500
$
45,000
282,000
490,000
26,500
0
(6,500)
(10,000) (
5,000
0
0
25,000
0
0
550,000
$ 324,500
10,000
540,000
59.00%
$ 492,000
5,000
3,000
6,000
$
50,000
$ 29,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80ccdbf5-e0cd-400f-8fdb-e325f6f6531e%2F14807fbd-1a62-4fdc-8826-d761808f85a3%2Fyrwns4t_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 $45,000 and a cost of $27,500 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
$ 282,000
Retail
$ 490,000
6,500
10,000
5,000
492,000
5,000
3,000
26,500
25,000
10,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $56,100, the cost-to-retail percentage for 2023 under the
LIFO retail method was 62%, and the appropriate price index was 102% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $48,300, the cost-to-retail percentage for 2024 under the
LIFO retail method was 61%, and the appropriate price index was 105% 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.
Answer is complete but not entirely correct.
Beginning inventory
Add: Purchases
Add: Freight-in
Less: Purchase returns
Less: Purchase discounts
Add: Net markups
Less: Net markdowns
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
$
27,500
$
45,000
282,000
490,000
26,500
0
(6,500)
(10,000) (
5,000
0
0
25,000
0
0
550,000
$ 324,500
10,000
540,000
59.00%
$ 492,000
5,000
3,000
6,000
$
50,000
$ 29,500
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