Question
Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2021. Information for 2021 and 2022 is as follows, with certain data intentionally
Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2021. Information for 2021 and 2022 is as follows, with certain data intentionally omitted: Required: Determine the missing data. (Round "Cost-to-Retail Percentage" to the nearest whole percent (i.e., 0.1234 should be entered as 12%).)
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, 2019. Available information follows:
- The inventory at January 1, 2019, had a retail value of $42,000 and a cost of $32,690 based on the conventional retail method.
- Transactions during 2019 were as follows:
| Cost | Retail | ||||
Gross purchases | $ | 236,780 |
| $ | 460,000 |
|
Purchase returns |
| 6,200 |
|
| 23,000 |
|
Purchase discounts |
| 4,700 |
|
|
|
|
Gross sales |
|
|
|
| 430,000 |
|
Sales returns |
|
|
|
| 6,000 |
|
Employee discounts |
|
|
|
| 5,000 |
|
Freight-in |
| 27,000 |
|
|
|
|
Net markups |
|
|
|
| 22,000 |
|
Net markdowns |
|
|
|
| 23,000 |
|
Sales to employees are recorded net of discounts.
- The retail value of the December 31, 2020, inventory was $53,045, the cost-to-retail percentage for 2020 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2020, price level.
- The retail value of the December 31, 2021, inventory was $47,170, the cost-to-retail percentage for 2021 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2020, price level.
Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a minus sign.)
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, 2019. Available information follows:
- The inventory at January 1, 2019, had a retail value of $42,000 and a cost of $32,690 based on the conventional retail method.
- Transactions during 2019 were as follows:
| Cost | Retail | ||||
Gross purchases | $ | 236,780 |
| $ | 460,000 |
|
Purchase returns |
| 6,200 |
|
| 23,000 |
|
Purchase discounts |
| 4,700 |
|
|
|
|
Gross sales |
|
|
|
| 430,000 |
|
Sales returns |
|
|
|
| 6,000 |
|
Employee discounts |
|
|
|
| 5,000 |
|
Freight-in |
| 27,000 |
|
|
|
|
Net markups |
|
|
|
| 22,000 |
|
Net markdowns |
|
|
|
| 23,000 |
|
Sales to employees are recorded net of discounts.
- The retail value of the December 31, 2020, inventory was $53,045, the cost-to-retail percentage for 2020 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2020, price level.
- The retail value of the December 31, 2021, inventory was $47,170, the cost-to-retail percentage for 2021 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2020, price level.
Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021.
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, 2019. Available information follows:
- The inventory at January 1, 2019, had a retail value of $42,000 and a cost of $32,690 based on the conventional retail method.
- Transactions during 2019 were as follows:
| Cost | Retail | ||||
Gross purchases | $ | 236,780 |
| $ | 460,000 |
|
Purchase returns |
| 6,200 |
|
| 23,000 |
|
Purchase discounts |
| 4,700 |
|
|
|
|
Gross sales |
|
|
|
| 430,000 |
|
Sales returns |
|
|
|
| 6,000 |
|
Employee discounts |
|
|
|
| 5,000 |
|
Freight-in |
| 27,000 |
|
|
|
|
Net markups |
|
|
|
| 22,000 |
|
Net markdowns |
|
|
|
| 23,000 |
|
Sales to employees are recorded net of discounts.
- The retail value of the December 31, 2020, inventory was $53,045, the cost-to-retail percentage for 2020 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2020, price level.
- The retail value of the December 31, 2021, inventory was $47,170, the cost-to-retail percentage for 2021 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2020, price level.
Required: 2. Estimate ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method. (Amounts to be deducted should be indicated with a minus sign.)
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