Please help me at your earliest convenience to understand practice question and add your calculations too.

CPA Practice Question

Klein Book Store uses the conventional retail method and is now considering converting to the LIFO retail method for the period beginning 1/1/18. Available information consists of the following:

2017	2018
Cost	Retail	Cost	Retail
Inventory 1/1	$12,500	$22,500	$ ?	$ ?
Purchases (net)	250,000	347,500	245,000	345,000
Net markups	-	5,000	-	10,000
Net markdowns	-	2,500	-	5,000
Sales (net)	-	322,000	-	327,500
Loss from breakage	-	500	-	-0-
Applicable price index	-	100	-	110

Following is a schedule showing the computation of the cost of inventory on hand at 12/31/14 based on the conventional retail method.

Cost	Retail	Ratio
Inventory 1/1/17	$12,500	$22,500
Purchases (net)	250,000	347,500
Net markups	-	5,000
Goods available	$262,500	375,000	70%
Sales (net)	(322,000)
Net markdowns	(2,500)
Loss from breakage	(500)
Inventory 12/31/17 at retail	$50,000
Inventory 12/31/17 at LCM ($50,000 70%)	$35,000

Prepare the journal entry to convert the inventory from the conventional retail to the LIFO retail method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Prepare a schedule showing the computation of the 12/31/18 inventory based on the LIFO retail method as adjusted for fluctuating prices. Without prejudice to your answer to (a) above, assume that you computed the 1/1/18 inventory (retail value $49,000) under the LIFO retail method at a cost of $34,000. (Do not leave any answer field blank. Enter 0 for amounts.)

Cost	Retail	Ratio
Inventory	$	$
Purchases
Net markups
Net markdowns
Total			%
Total goods available	$
Sales
Ending inventory at retail?end of year dollars	$
Ending inventory deflated	$	$
Beginning
Layer added		$
Ending inventory at cost	$

Please help me at your earliest convenience to understand practice question and add your calculations too. CPA Practice Question Klein Book Store uses the conventional retail method and is now considering converting to the LIFO retail method for the period beginning 1/1/18. Available information consists of the following: 2017 Cost Inventory 1/1 Purchases (net) Net markups Net markdowns Sales (net) Loss from breakage Applicable price index $12,500 250,000 - 2018 Retai l $22,500 347,500 5,000 2,500 322,000 500 100 Cost $ ? 245,000 - Retai l $ ? 345,000 10,000 5,000 327,500 -0110 Following is a schedule showing the computation of the cost of inventory on hand at 12/31/14 based on the conventional retail method. Cost Retail Inventory 1/1/17 $12,500 $22,500 Purchases (net) 250,000 347,500 Net markups - Goods available Rati o 5,000 $262,500 Sales (net) 375,000 70% (322,000) Net markdowns (2,500) Loss from breakage (500) Inventory 12/31/17 at retail $50,000 Inventory 12/31/17 at LCM ($50,000 70%) $35,000 Prepare the journal entry to convert the inventory from the conventional retail to the LIFO retail method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare a schedule showing the computation of the 12/31/18 inventory based on the LIFO retail method as adjusted for fluctuating prices. Without prejudice to your answer to (a) above, assume that you computed the 1/1/18 inventory (retail value $49,000) under the LIFO retail method at a cost of $34,000. (Do not leave any answer field blank. Enter 0 for amounts.) Cost Retail $ Ratio $ Inventory Purchases Net markups Net markdowns Total % $ Total goods available Sales $ Ending inventory at retailend of year dollars $ $ Ending inventory deflated Beginning $ Layer added $ Ending inventory at cost