[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 $45,000 and a cost of $27,500 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 $ 282,000 Retail $ 490,000 6,500 5,000 10,000 492,000 5,000 3,000 26,500 25,000 10,000 Sales to employees are recorded net of discounts. c. 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. d. 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. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for 2023 and 2024. Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the nearest whole dollar. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024
[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 $45,000 and a cost of $27,500 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 $ 282,000 Retail $ 490,000 6,500 5,000 10,000 492,000 5,000 3,000 26,500 25,000 10,000 Sales to employees are recorded net of discounts. c. 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. d. 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. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for 2023 and 2024. Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the nearest whole dollar. Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vinubhai
![[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 $45,000 and a cost of $27,500 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
$ 282,000
Retail
$ 490,000
6,500
5,000
10,000
492,000
5,000
3,000
26,500
25,000
10,000
Sales to employees are recorded net of discounts.
c. 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.
d. 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.
Required:
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for
2023 and 2024.
Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the
nearest whole dollar.
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf3504f1-2466-42c0-8cb8-d20a22680dcf%2F34aae66a-f1f8-4572-b1e2-565d1c7eda57%2Foamty5_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:
a. 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.
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
$ 282,000
Retail
$ 490,000
6,500
5,000
10,000
492,000
5,000
3,000
26,500
25,000
10,000
Sales to employees are recorded net of discounts.
c. 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.
d. 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.
Required:
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2023. Estimate ending inventory for
2023 and 2024.
Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the
nearest whole dollar.
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education