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Need help with the circle part. Cant figure out the correct calculation. If someone could just give me the correct formula to use, I can
Need help with the circle part. Cant figure out the correct calculation. If someone could just give me the correct formula to use, I can figure it out. Thank you!
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 $39,000 and a cost of $31,130 based on the conventional retail method. Transactions during 2019 were as follows: $ $ Cost 200,150 5,900 4,400 Retail 430,000 26,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 397,500 8,000 2,500 28,500 19,000 26,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2020, inventory was $49,290, the cost-to-retail percentage for 2020 under the LIFO retail method was 78%, and the appropriate price index was 106% of the January 1, 2020, price level. The retail value of the December 31, 2021, inventory was $46,870, the cost-to-retail percentage for 2021 under the LIFO retail method was 77%, and the appropriate price index was 109% of the January 1, 2020, price level. Estimate ending inventory for 2019 using the conventional retail method. Cost Retail Cost-to- Retail Ratio IS 39,000 430,000 Beginning inventory Add: Purchases Less: Purchase discounts Less: Purchase returns Add: Freight-in Add: Net markups 31.130$ 200, 150 (4,400) (5.900) 28,500 0 (26,000) 19,000 462,000 (26,000) 436,000 Less: Net markdowns Goods available for sale 249,480 Cost-to-retail percentage 54% Is Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 397,500 (8.000) 2,500 (392,000) 44,000 23.760 Estimate ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method. Cost Retail Cost-to- Retail Ratio 39,000 430,000 31,130$ 200, 150 28,500 5,900 26,000 Beginning inventory Add: Purchases Add: Freight-in Less: Purchase retums Less: Purchase discounts Add: Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) 4,400 19,000 26,000 397,000 436,000 218,350 249.480 s Cost-to-retail percentage 55% s Less: Net sales Sales Sales retums Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 397,500 (8,000) 2,500 (392,000) 44,000 $ $ 33,880 Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021. Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021 S 33.110Step by Step Solution
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