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 $54,000 and a cost of $39,500 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 $ 344,580 6,800 5,900 31,000 Retail $ 580,000 19,000 565,000 6,500 3,000 Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024 34,000 19,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $78,225, the cost-to-retail percentage for 2023 under the LIFO retail method was 72%, and the appropriate price index was 105% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $54,540, the cost-to-retail percentage for 2024 under the LIFO retail method was 71%, and the appropriate price index was 108% 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
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 $54,000 and a cost of $39,500 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
$ 344,580
6,800
5,900
31,000
Retail
$ 580,000
19,000
565,000
6,500
3,000
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024
34,000
19,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $78,225, the cost-to-retail percentage for 2023 under the
LIFO retail method was 72%, and the appropriate price index was 105% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $54,540, the cost-to-retail percentage for 2024 under the
LIFO retail method was 71%, and the appropriate price index was 108% 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.
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 $54,000 and a cost of $39,500 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 $ 344,580 6,800 5,900 31,000 Retail $ 580,000 19,000 565,000 6,500 3,000 Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024 34,000 19,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $78,225, the cost-to-retail percentage for 2023 under the LIFO retail method was 72%, and the appropriate price index was 105% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $54,540, the cost-to-retail percentage for 2024 under the LIFO retail method was 71%, and the appropriate price index was 108% 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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education