[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 $46,000 and a cost of $29,160 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 $ 291,540 6,000 5,100 27,000 Retail $ 500,000 11,000 500,000 8,500 3,500 26,000 11,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $61,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 64%, 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 $49,290, the cost-to-retail percentage for 2024 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2023, price level.
[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 $46,000 and a cost of $29,160 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 $ 291,540 6,000 5,100 27,000 Retail $ 500,000 11,000 500,000 8,500 3,500 26,000 11,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $61,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 64%, 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 $49,290, the cost-to-retail percentage for 2024 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2023, price level.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Aa.43.
Transcribed Image Text: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 entered as 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 $46,000 and a cost of $29,160 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
$ 291,540
6,000
5,100
27,000
Retail
$500,000
11,000
500,000
8,500
3,500
26,000
11,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $61,800, the cost-to-retail percentage for 2023 under the
LIFO retail method was 64%, 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 $49,290, the cost-to-retail percentage for 2024 under the
LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2023, price level.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53138e5b-2d55-4cf9-9daf-54626cfef786%2Fcce55239-c9b0-485c-bd59-155b6d7e6938%2Fbvbauh_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 $46,000 and a cost of $29,160 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
$ 291,540
6,000
5,100
27,000
Retail
$500,000
11,000
500,000
8,500
3,500
26,000
11,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $61,800, the cost-to-retail percentage for 2023 under the
LIFO retail method was 64%, 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 $49,290, the cost-to-retail percentage for 2024 under the
LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2023, price level.
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