Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Less: Purchase returns Less: Purchase discounts Add: Freight-in Add: Net markups Answer is not complete. Cost-to- Cost Retail Retail Ratio $ 32,170 41,000 224,310 450,000 6,100 24,000 4,600 27,500 21,000 Goods available for sale $ 273,2800 464,000 Cost-to-retail percentage 56.00% Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 5 0× 5,500 30,800 (5,500) $ 55,000 y www 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 $41,000 and a cost of $32,170 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $224,310 Retail $ 450,000 Purchase discounts 6,100 4,600 24,000 Sales. 408,500 Sales returns 5,000 Employee discounts 5,500 Freight-in 27,500 Net markups Net markdowns 21,000 24,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $59,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 74%, and the appropriate price Index was 104% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $47,080, the cost-to-retail percentage for 2024 under the LIFO retail method was 73 %, and the appropriate price index was 107% 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 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Less: Purchase returns Less: Purchase discounts Add: Freight-in Add: Net markups Answer is not complete. Cost-to- Cost Retail Retail Ratio $ 32,170 41,000 224,310 450,000 6,100 24,000 4,600 27,500 21,000 Goods available for sale $ 273,2800 464,000 Cost-to-retail percentage 56.00% Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 5 0× 5,500 30,800 (5,500) $ 55,000 y www 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 $41,000 and a cost of $32,170 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $224,310 Retail $ 450,000 Purchase discounts 6,100 4,600 24,000 Sales. 408,500 Sales returns 5,000 Employee discounts 5,500 Freight-in 27,500 Net markups Net markdowns 21,000 24,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $59,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 74%, and the appropriate price Index was 104% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $47,080, the cost-to-retail percentage for 2024 under the LIFO retail method was 73 %, and the appropriate price index was 107% of the January 1, 2023, price level.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 8MC: At December 31, 2019, the following information was available from Crisford Companys books: Sales...
See similar textbooks
icon
Related questions
Question

Required:

1. Estimate ending inventory for 2022 using the conventional retail method.

 

Required:

2. Estimate ending inventory for 2022 assuming Raleigh Department Store used the LIFO retail method.

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 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Less: Purchase returns Less: Purchase discounts Add: Freight-in Add: Net markups Answer is not complete. Cost-to- Cost Retail Retail Ratio $ 32,170 41,000 224,310 450,000 6,100 24,000 4,600 27,500 21,000 Goods available for sale $ 273,2800 464,000 Cost-to-retail percentage 56.00% Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 5 0× 5,500 30,800 (5,500) $ 55,000 y www
Transcribed Image Text: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 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Less: Purchase returns Less: Purchase discounts Add: Freight-in Add: Net markups Answer is not complete. Cost-to- Cost Retail Retail Ratio $ 32,170 41,000 224,310 450,000 6,100 24,000 4,600 27,500 21,000 Goods available for sale $ 273,2800 464,000 Cost-to-retail percentage 56.00% Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 5 0× 5,500 30,800 (5,500) $ 55,000 y www
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 $41,000 and a cost of $32,170 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $224,310 Retail $ 450,000 Purchase discounts 6,100 4,600 24,000 Sales. 408,500 Sales returns 5,000 Employee discounts 5,500 Freight-in 27,500 Net markups Net markdowns 21,000 24,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $59,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 74%, and the appropriate price Index was 104% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $47,080, the cost-to-retail percentage for 2024 under the LIFO retail method was 73 %, and the appropriate price index was 107% of the January 1, 2023, price level.
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 $41,000 and a cost of $32,170 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Cost $224,310 Retail $ 450,000 Purchase discounts 6,100 4,600 24,000 Sales. 408,500 Sales returns 5,000 Employee discounts 5,500 Freight-in 27,500 Net markups Net markdowns 21,000 24,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $59,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 74%, and the appropriate price Index was 104% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $47,080, the cost-to-retail percentage for 2024 under the LIFO retail method was 73 %, and the appropriate price index was 107% of the January 1, 2023, price level.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SEE MORE TEXTBOOKS