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 $51,000 and a cost of $38,060 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $344,940 Retail $550,000 6,500 16,000 Purchase discounts 5,600 Sales 544,000 Sales returns 5,000 Employee discounts 6,000 Freight-in 29,500 Net markups Net markdowns 31,000 16,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the LIFO retail method was 75%, 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 $51,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 74 %, and the appropriate price index was 105% 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. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 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 $51,000 and a cost of $38,060 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $344,940 Retail $550,000 6,500 16,000 Purchase discounts 5,600 Sales 544,000 Sales returns 5,000 Employee discounts 6,000 Freight-in 29,500 Net markups Net markdowns 31,000 16,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the LIFO retail method was 75%, 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 $51,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 74 %, and the appropriate price index was 105% 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. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024
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 $51,000 and a cost of $38,060 based on the conventional retail
method.
b. Transactions during 2022 were as follows:
Gross purchases
Purchase returns
Cost
$ 344,940
Retail
$ 550,000
Purchase discounts
6,500
5,600
16,000
Sales
544,000
Sales returns
5,000
Employee discounts
5,000
Freight-in
29,500
Net markups
Net markdowns
31,000
16,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the
LIFO retail method was 75%, 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 $51,450, the cost-to-retail percentage for 2024 under the
LIFO retail method was 74%, and the appropriate price index was 105% 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.
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3648e63c-5f72-43ae-9547-3b45613e4e55%2F3cfd155a-6c05-4947-897e-872dfd095043%2Fdo97y4a_processed.png&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 $51,000 and a cost of $38,060 based on the conventional retail
method.
b. Transactions during 2022 were as follows:
Gross purchases
Purchase returns
Cost
$ 344,940
Retail
$ 550,000
Purchase discounts
6,500
5,600
16,000
Sales
544,000
Sales returns
5,000
Employee discounts
5,000
Freight-in
29,500
Net markups
Net markdowns
31,000
16,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the
LIFO retail method was 75%, 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 $51,450, the cost-to-retail percentage for 2024 under the
LIFO retail method was 74%, and the appropriate price index was 105% 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.
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024
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