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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 $52,000 and a cost of $39,960 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 Cost $ 356,160 6,600 5,788 30,000 Beginning inventory Retail $ 560,000 17,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023. price level. 551,500 8,000 2,500 Cost 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. 32,000 17,000 Retail Cost-to-Retail Ratio

! 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 $52,000 and a cost of $39,960 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 Cost $ 356,160 6,600 5,788 30,000 Beginning inventory Retail $ 560,000 17,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023. price level. 551,500 8,000 2,500 Cost 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. 32,000 17,000 Retail Cost-to-Retail Ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 $52,000 and a cost of $39,960 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 Cost $ 356,160 6,600 5,700 30,000 Beginning inventory Retail $ 560,000 17,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023, price level. 551,500 8,000 2,500 Cost 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. 32,000 17,000 Retail Cost-to-Retail Ratio
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 $52,000 and a cost of $39,960 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 Cost $ 356,160 6,600 5,700 30,000 Beginning inventory Retail $ 560,000 17,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023, price level. 551,500 8,000 2,500 Cost 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. 32,000 17,000 Retail Cost-to-Retail Ratio
Jales recurtis Employee discounts Freight-in Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023, price level. Beginning inventory 30,000 Goods available for sale Cost-to-retail percentage Less: Net sales 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. Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 0,000 2,500 32,000 17,000 Cost Retail Cost-to-Retail Ratio
Transcribed Image Text:Jales recurtis Employee discounts Freight-in Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023, price level. Beginning inventory 30,000 Goods available for sale Cost-to-retail percentage Less: Net sales 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. Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 0,000 2,500 32,000 17,000 Cost Retail Cost-to-Retail Ratio
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