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 $31,000 and a cost of $11,000 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 $ 570,000 6,000 5,000 20,000 Retail $ 953,000 4,000 958,000 5,000 3,000 20,000 4,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the LIFO retail method was 42% , and the appropriate price index was 107% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 41%, and the appropriate price index was 110% 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.
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 $31,000 and a cost of $11,000 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 $ 570,000 6,000 5,000 20,000 Retail $ 953,000 4,000 958,000 5,000 3,000 20,000 4,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the LIFO retail method was 42% , and the appropriate price index was 107% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 41%, and the appropriate price index was 110% 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.
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 $31,000 and a cost of $11,000 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
$ 570,000
6,000
5,000
20,000
Retail
$ 953,000
4,000
958,000
5,000
3,000
20,000
4,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the
LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the
LIFO retail method was 41%, and the appropriate price index was 110% 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F016d526e-8620-4c04-8862-733ac5643b06%2Fad175d2f-12af-448d-a7b1-11e73d454ddc%2Fpyx1oow_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 $31,000 and a cost of $11,000 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
$ 570,000
6,000
5,000
20,000
Retail
$ 953,000
4,000
958,000
5,000
3,000
20,000
4,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $48,150, the cost-to-retail percentage for 2023 under the
LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $43,450, the cost-to-retail percentage for 2024 under the
LIFO retail method was 41%, and the appropriate price index was 110% 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.
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