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 $54,000 and a cost of $39,500 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 $ 344,580 6,800 5,900 31,000 Retail $ 580,000 19,000 565,000 6,500 3,000 Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024 34,000 19,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $78,225, the cost-to-retail percentage for 2023 under the LIFO retail method was 72%, and the appropriate price index was 105% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $54,540, the cost-to-retail percentage for 2024 under the LIFO retail method was 71%, and the appropriate price index was 108% 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 entered as 12.34) and final answers to the nearest whole dollar.
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 $54,000 and a cost of $39,500 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 $ 344,580 6,800 5,900 31,000 Retail $ 580,000 19,000 565,000 6,500 3,000 Total ending inventory at dollar-value LIFO retail cost, 2023 Total ending inventory at dollar-value LIFO retail cost, 2024 34,000 19,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $78,225, the cost-to-retail percentage for 2023 under the LIFO retail method was 72%, and the appropriate price index was 105% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $54,540, the cost-to-retail percentage for 2024 under the LIFO retail method was 71%, and the appropriate price index was 108% 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 entered as 12.34) and final answers to the nearest whole dollar.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...
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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 $54,000 and a cost of $39,500 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
$ 344,580
6,800
5,900
31,000
Retail
$ 580,000
19,000
565,000
6,500
3,000
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024
34,000
19,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $78,225, the cost-to-retail percentage for 2023 under the
LIFO retail method was 72%, and the appropriate price index was 105% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $54,540, the cost-to-retail percentage for 2024 under the
LIFO retail method was 71%, and the appropriate price index was 108% 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 entered as 12.34) and final
answers to the nearest whole dollar.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9781bd28-fcf5-473d-9247-6584610d1f56%2F579d8331-a4d2-4d1e-b379-715499b2b6a2%2Fzbpbzh_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 $54,000 and a cost of $39,500 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
$ 344,580
6,800
5,900
31,000
Retail
$ 580,000
19,000
565,000
6,500
3,000
Total ending inventory at dollar-value LIFO retail cost, 2023
Total ending inventory at dollar-value LIFO retail cost, 2024
34,000
19,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2023, inventory was $78,225, the cost-to-retail percentage for 2023 under the
LIFO retail method was 72%, and the appropriate price index was 105% of the January 1, 2023, price level.
d. The retail value of the December 31, 2024, inventory was $54,540, the cost-to-retail percentage for 2024 under the
LIFO retail method was 71%, and the appropriate price index was 108% 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 entered as 12.34) and final
answers to the nearest whole dollar.
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