Problem 9 12 (Algo) Retail inventory method various applications LO9 3, 9 4, 9 5 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 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 Transactions during 2019 were as follows Cost Retail Gross purchases $ 177,030 $ 410,000 Purchase returns 5,700 28,000 Purchase discounts 4,200 Gross sales 345,000 Sales returns 5,500 Employee discounts 3,000 Freight in 29,500 Net markups 17,000 Net markdowns 28,000 Sales to employees are recorded net of discounts 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 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 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 ) Required 1 Estimate ending inventory for 2019 using the conventional retail method (Amounts to be deducted should be indicated with a minus sign ) Cost Retail Cost to Retail R atio Beginning inventory Goods available for sale $ 0 0 Cost to retail percentage Less Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Cost Retail Cost to Retail Ratio Beginning inventory Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) 0 Cost to retail percentage Less Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 0

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Problem 9-12 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [The following information applies to the questions displayed below.] Raleigh Department Store uses the

Problem 9-12 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5]

[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:

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.
Transactions during 2019 were as follows:

	Cost		Retail
Gross purchases	$	177,030	$	410,000
Purchase returns		5,700		28,000
Purchase discounts		4,200
Gross sales				345,000
Sales returns				5,500
Employee discounts				3,000
Freight-in		29,500
Net markups				17,000
Net markdowns				28,000

Sales to employees are recorded net of discounts.

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.
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.

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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.)

Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a minus sign.) Cost Retail Cost-to-Retail R atio Beginning inventory Goods available for sale $ 0 0 Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Cost Retail Cost-to-Retail Ratio Beginning inventory Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) 0 Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 0