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 $36,000 and a cost of $29,570 based on the conventional retail method.
b.	Transactions during 2014 were as follows:

	Cost			Retail
Gross purchases	$	165,860		$	400,000
Purchase returns		5,600			29,000
Purchase discounts		4,100
Gross sales					323,000
Sales returns					10,000
Employee discounts					3,500
Freight-in		30,000
Net markups					16,000
Net markdowns					29,000

Sales to employees are recorded net of discounts.

c.

The retail value of the December 31, 2015, inventory was $87,450, the cost-to-retail percentage for 2015 under the LIFO retail method was 67%, and the appropriate price index was 106% of the January 1, 2015, price level.

d.

The retail value of the December 31, 2016, inventory was $45,235, the cost-to-retail percentage for 2016 under the LIFO retail method was 66%, and the appropriate price index was 109% of the January 1, 2015, price level.

Required

2.

Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the LIFO retail method.

	Cost	Retail	Cost to Retail ratio
Beginning inventory
Goods available for sale (excluding beg. inventory)
Goods available for sale (including beg. inventory)
Cost-to-retail percentage
Estimated ending inventory at retail

Estimated ending inventory at cost