! 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde883f2b-285d-4d55-8493-937a7e117d03%2Fcfa77689-038f-4da3-bc1b-6b25e2a65879%2F3w63pyn_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 $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: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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