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Don't know what I am doing wrong and where. Thanks for the help. Required information (The following information applies to the questions displayed below.] Raleigh
Don't know what I am doing wrong and where. Thanks for the help.
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: a. The inventory at January 1, 2019, had a retail value of $53,000 and a cost of $36,930 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $327,870 6,700 5,800 Retail $570,000 18,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 568,000 7,500 2,000 30,500 33,000 18,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $61,880, the cost-to-retail percentage for 2020 under the LIFO retail method was 70%, and the appropriate price index was 104% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $53,500, the cost-to-retail percentage for 2021 under the LIFO retail method was 69%, and the appropriate price index was 107% 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.) Cost-to-Retail Ratio $ $ Cost 36,930 327,870 30,500 (6,700) (5,800) Retail 53,000 570,000 Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) (18,000) 33,000 (18,000) 620,000 673,000 382,800 419,730 $ Cost-to-retail percentage Less: Net sales Sales $ Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost (568,000) (7,500) (2,000) | $ 558,500 673,000 $Step by Step Solution
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