Carla Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2017, 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, 2018, 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, 2016, had a retail value of $71,000 and cost of $61,000 based on the conventional retail method. Transactions during 2016 were as follows. 2. Cost $239,042 11,500 Gross purchases Purchase returns Purchase discounts Gross sales (after employee discounts) Sales returns Employee discounts Freight-in Net markups Net markdowns Retail $346,000 13,400 3,900 336,000 3,700 8,100 21,200 9,700 14,200 3. The retail value of the December 31, 2017, inventory was $82,400, the cost ratio for 2017 under the LIFO retail method was 74%, and the regional price index was 103% of the January 1, 2017, price level. The retail value of the December 31, 2018, inventory was $76,300, the cost ratio for 2018 under the LIFO retail method was 76%, and the regional price index was 109% of the January 1, 2017, price level. 4. Required: 1. Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the conventional retail method. (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the LIFO retail method. 3. Calculate the cost of inventory for December 31, 2015 and 2016, based on the dollar-value LIFO retail method Carla Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2017, 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, 2018, 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, 2016, had a retail value of $71,000 and cost of $61,000 based on the conventional retail method. Transactions during 2016 were as follows. 2. Cost $239,042 11,500 Gross purchases Purchase returns Purchase discounts Gross sales (after employee discounts) Sales returns Employee discounts Freight-in Net markups Net markdowns Retail $346,000 13,400 3,900 336,000 3,700 8,100 21,200 9,700 14,200 3. The retail value of the December 31, 2017, inventory was $82,400, the cost ratio for 2017 under the LIFO retail method was 74%, and the regional price index was 103% of the January 1, 2017, price level. The retail value of the December 31, 2018, inventory was $76,300, the cost ratio for 2018 under the LIFO retail method was 76%, and the regional price index was 109% of the January 1, 2017, price level. 4. Required: 1. Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the conventional retail method. (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the LIFO retail method. 3. Calculate the cost of inventory for December 31, 2015 and 2016, based on the dollar-value LIFO retail method
