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, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $41,000 and a cost of $32,170 based on the conventional retail method. b. Transactions during 2019 were as follows: Gross purchases Purchase returns. Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $224,310 6,100 4,600 27,500 Retail $450,000 24,000 408,500 5,000 5,500 Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021 21,000 24,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $59,800, the cost-to-retail percentage for 2020 under the LIFO retail method was 74%, and the appropriate price index was 104% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $47,080, the cost-to-retail percentage for 2021 under the LIFO retail method was 73%, and the appropriate price index was 107% of the January 1, 2020, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021.
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, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $41,000 and a cost of $32,170 based on the conventional retail method. b. Transactions during 2019 were as follows: Gross purchases Purchase returns. Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $224,310 6,100 4,600 27,500 Retail $450,000 24,000 408,500 5,000 5,500 Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021 21,000 24,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $59,800, the cost-to-retail percentage for 2020 under the LIFO retail method was 74%, and the appropriate price index was 104% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $47,080, the cost-to-retail percentage for 2021 under the LIFO retail method was 73%, and the appropriate price index was 107% of the January 1, 2020, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021.
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, 2019. Available
information follows:
a. The inventory at January 1, 2019, had a retail value of $41,000 and a cost of $32,170 based on the conventional retail
method.
b. Transactions during 2019 were as follows:
Gross purchases
Purchase returns.
Purchase discounts
Gross sales
Sales returns
Employee discounts
Freight-in
Net markups
Net markdowns
Cost
$224,310
6,100
4,600
27,500
Retail
$450,000
24,000
408,500
5,000
5,500
Total ending inventory at dollar-value LIFO retail cost, 2020
Total ending inventory at dollar-value LIFO retail cost, 2021
21,000
24,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2020, inventory was $59,800, the cost-to-retail percentage for 2020 under the
LIFO retail method was 74%, and the appropriate price index was 104 % of the January 1, 2020, price level.
d. The retail value of the December 31, 2021, inventory was $47,080, the cost-to-retail percentage for 2021 under the LIFO
retail method was 73%, and the appropriate price index was 107% of the January 1, 2020, price level.
Required:
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for
2020 and 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96da8c53-acef-4ba6-8988-556c0ed7aefa%2F344fdd39-5e1c-437d-9dd2-2909d83c4584%2F5lbfy66_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, 2019. Available
information follows:
a. The inventory at January 1, 2019, had a retail value of $41,000 and a cost of $32,170 based on the conventional retail
method.
b. Transactions during 2019 were as follows:
Gross purchases
Purchase returns.
Purchase discounts
Gross sales
Sales returns
Employee discounts
Freight-in
Net markups
Net markdowns
Cost
$224,310
6,100
4,600
27,500
Retail
$450,000
24,000
408,500
5,000
5,500
Total ending inventory at dollar-value LIFO retail cost, 2020
Total ending inventory at dollar-value LIFO retail cost, 2021
21,000
24,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2020, inventory was $59,800, the cost-to-retail percentage for 2020 under the
LIFO retail method was 74%, and the appropriate price index was 104 % of the January 1, 2020, price level.
d. The retail value of the December 31, 2021, inventory was $47,080, the cost-to-retail percentage for 2021 under the LIFO
retail method was 73%, and the appropriate price index was 107% of the January 1, 2020, price level.
Required:
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for
2020 and 2021.
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