Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I don't know fill out the last one. (The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retail method

I don't know fill out the last one.image text in transcribed

(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 $37,000 and a cost of $30,090 based on the conventional retail method. b. Transactions during 2019 were as follows: Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost Retail $177,030 $410,000 5,700 28,000 4,200 345,000 5,500 3,000 29,500 17,000 28,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $68,850, the cost-to-retail percentage for 2020 under the LIFO retail method was 70%, and the appropriate price index was 102% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $40,950, the cost-to-retail percentage for 2021 under the LIFO retail method was 69%, and the appropriate price index was 105% 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. Answer is complete but not entirely correct. $ Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021 46,623 25,975 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Mantras Forensic Accounting Important Standards On Auditing

Authors: Buffy Mielcarek

1st Edition

B09PP4SKL1, 979-8796281437

More Books

Students also viewed these Accounting questions