Beginning inventory Add: Purchases Add: Freight-in Less: Purchase discounts Less: Purchase returns Add: Net markups * Answer is complete but not entirely correct. Cost-to- Cost Retail Retail Ratio $ 27,500 $ 45,000 282,000 490,000 26,500 (5,000) 0 (6,500) (10,000) 0 25,000 550,000 Less: Net markdowns (10,000) Goods available for sale $ 324,500 540,000 Cost-to-retail percentage 59.00% Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 492,000 (5,000) 3,000 $ 808,500 x 0 $ [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: The inventory at January 1, 2022, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method. Transactions during 2022 were as follows: CostRetailGross purchases$ 282,000S 490,000 Purchase returns 6,50010,000 Purchase discounts 5,000 Sales 492,000Sales returns 5,000 Employee discounts 3,000 Freight - in26, 500 Net markups 25,000Net markdowns 10,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2023, inventory was $56, 100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62 %, and the appropriate price index was 102% of the January 1, 2023, price level. The retail value of the December 31, 2024, inventory was $48, 300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61 %, and the appropriate price index was 105% of the January 1, 2023, price level.
Beginning inventory Add: Purchases Add: Freight-in Less: Purchase discounts Less: Purchase returns Add: Net markups * Answer is complete but not entirely correct. Cost-to- Cost Retail Retail Ratio $ 27,500 $ 45,000 282,000 490,000 26,500 (5,000) 0 (6,500) (10,000) 0 25,000 550,000 Less: Net markdowns (10,000) Goods available for sale $ 324,500 540,000 Cost-to-retail percentage 59.00% Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 492,000 (5,000) 3,000 $ 808,500 x 0 $ [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: The inventory at January 1, 2022, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method. Transactions during 2022 were as follows: CostRetailGross purchases$ 282,000S 490,000 Purchase returns 6,50010,000 Purchase discounts 5,000 Sales 492,000Sales returns 5,000 Employee discounts 3,000 Freight - in26, 500 Net markups 25,000Net markdowns 10,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2023, inventory was $56, 100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62 %, and the appropriate price index was 102% of the January 1, 2023, price level. The retail value of the December 31, 2024, inventory was $48, 300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61 %, and the appropriate price index was 105% of the January 1, 2023, price level.
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...
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Question
Transcribed Image Text:Beginning inventory
Add: Purchases
Add: Freight-in
Less: Purchase discounts
Less: Purchase returns
Add: Net markups
* Answer is complete but not entirely correct.
Cost-to-
Cost
Retail
Retail
Ratio
$
27,500 $
45,000
282,000
490,000
26,500
(5,000)
0
(6,500)
(10,000)
0
25,000
550,000
Less: Net markdowns
(10,000)
Goods available for sale
$
324,500
540,000
Cost-to-retail percentage
59.00%
Less: Net sales
Sales
Sales returns
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost
$
492,000
(5,000)
3,000
$ 808,500 x
0
$
![[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:
The inventory at January 1, 2022, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method.
Transactions during 2022 were as follows:
CostRetailGross purchases$ 282,000S 490,000 Purchase returns 6,50010,000 Purchase discounts 5,000 Sales 492,000Sales returns 5,000 Employee discounts 3,000 Freight - in26, 500 Net markups 25,000Net markdowns 10,000
Sales to employees are recorded net of discounts.
The retail value of the December 31, 2023, inventory was $56, 100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62 %, and the appropriate price index was 102% of the January 1, 2023, price level.
The retail value of the December 31, 2024, inventory was $48, 300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61 %, and the appropriate price index was 105% of the January 1, 2023, price level.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F754c27a3-4f7d-43a0-a737-2c3174eeaa16%2F1c2d6cc0-9fa4-447b-8be6-e7ec6ad15f57%2F7kirbq9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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:
The inventory at January 1, 2022, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method.
Transactions during 2022 were as follows:
CostRetailGross purchases$ 282,000S 490,000 Purchase returns 6,50010,000 Purchase discounts 5,000 Sales 492,000Sales returns 5,000 Employee discounts 3,000 Freight - in26, 500 Net markups 25,000Net markdowns 10,000
Sales to employees are recorded net of discounts.
The retail value of the December 31, 2023, inventory was $56, 100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62 %, and the appropriate price index was 102% of the January 1, 2023, price level.
The retail value of the December 31, 2024, inventory was $48, 300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61 %, and the appropriate price index was 105% of the January 1, 2023, price level.
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