Question
I have filled out everything that I can...and it is all correct. I just need help with the other blanks and anything I may have
I have filled out everything that I can...and it is all correct. I just need help with the other blanks and anything I may have left out! Thank you!
Raleigh Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2014, and is now considering converting to the dollar-value LIFO retail inventory method. Management requested, during your examination of the financial statements for the year ended December 31, 2016, that you furnish a summary showing certain computations of inventory costs for the past three years.
Available information follows:
a. The inventory at January 1, 2014, had a retail value of $53,000 and a cost of $36,930 based on the conventional retail method.
b. | Transactions during 2014 were as follows: |
Sales to employees are recorded net of discounts
|
c. | The retail value of the December 31, 2015, inventory was $61,880, the cost-to-retail percentage for 2015 under the LIFO retail method was 70%, and the appropriate price index was 104% of the January 1, 2015, price level. |
d. | The retail value of the December 31, 2016, inventory was $53,500, the cost-to-retail percentage for 2016 under the LIFO retail method was 69%, and the appropriate price index was 107% of the January 1, 2015, price level. |
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.)
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2. | Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the LIFO retail method.
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