Blue Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is now considering converting to the dollar value LIFO inventory method During your examination of the financial statements for the year ended December 31, 2021, management requested that you furnish a summary showing certain computations of inventory cost for the past 3 years Here is the available information 1 The inventory at January 1, 2019, had a retail value of $55,000 and cost of $29,400 based on the conventional retail method 2 Transactions during 2019 were as follows Cost Retail Purchases $334,084 $563,000 Purchase returns 5,100 10,000 Purchase discounts 5,900 Gross sales revenue (after employee discounts) 551,500 Sales returns 8,800 Employee discounts 2,900 Freight in 17,800 Net markups 19,600 Net markdowns 12,100 3 The retail value of the December 31, 2020, inventory was $74,800, the cost ratio for 2020 under the LIFO retail method was 64 , and the regional price index was 106 of the January 1, 2020, price level 4 The retail value of the December 31, 2021, inventory was $62,600, the cost ratio for 2021 under the LIFO retail method was 63 , and the regional price index was 108 of the January 1, 2020, price level A Compute the cost of inventory on hand at December 31, 2019, based on the conventional retail method B Compute the inventory to be reported on December 31, 2019, in accordance with procedures necessary to convert from the conventional retail method to the LIFO retail method beginning January 1, 2020 Assume that the retail value of the December 31, 2019, inventory was $60,000 C Without prejudice to your solution to part (b), assume that you computed the December 31, 2019, inventory (retail value $60,000) under the LIFO retail method at a cost of $35,100 Compute the cost of the stores 2020 and 2021 year end inventories under the dollar value LIFO method (Round ratios for computational purposes to 2 decimal places, e g 78 72 and final answer to 0 decimal places, e g 28,987 ) 2020 2021 Inventories under the dollar value LIFO method $ $

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Blue Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is now considering converting to the

Blue Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is now considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year ended December 31, 2021, management requested that you furnish a summary showing certain computations of inventory cost for the past 3 years. Here is the available information.

1.		The inventory at January 1, 2019, had a retail value of $55,000 and cost of $29,400 based on the conventional retail method.
2.		Transactions during 2019 were as follows.

	Cost		Retail
Purchases		$334,084		$563,000
Purchase returns		5,100		10,000
Purchase discounts		5,900
Gross sales revenue (after employee discounts)				551,500
Sales returns				8,800
Employee discounts				2,900
Freight-in		17,800
Net markups				19,600
Net markdowns				12,100

3.		The retail value of the December 31, 2020, inventory was $74,800, the cost ratio for 2020 under the LIFO retail method was 64%, and the regional price index was 106% of the January 1, 2020, price level.
4.		The retail value of the December 31, 2021, inventory was $62,600, the cost ratio for 2021 under the LIFO retail method was 63%, and the regional price index was 108% of the January 1, 2020, price level.

A. Compute the cost of inventory on hand at December 31, 2019, based on the conventional retail method.

B. Compute the inventory to be reported on December 31, 2019, in accordance with procedures necessary to convert from the conventional retail method to the LIFO retail method beginning January 1, 2020. Assume that the retail value of the December 31, 2019, inventory was $60,000.

C. Without prejudice to your solution to part (b), assume that you computed the December 31, 2019, inventory (retail value $60,000) under the LIFO retail method at a cost of $35,100. Compute the cost of the stores 2020 and 2021 year-end inventories under the dollar-value LIFO method. (Round ratios for computational purposes to 2 decimal places, e.g. 78.72% and final answer to 0 decimal places, e.g. 28,987.)