Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $48,000 and a cost of $32,600 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $312,360 6,200 5,300 Retail $520,000 13,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 511,500 5,000 4,500 28,000 28,000 13,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $64,050, the cost-to-retail percentage for 2020 under the LIFO retail method was 68%, and the appropriate price index was 105% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $51,300, the cost-to-retail percentage for 2021 under the LIFO retail method was 67%, and the appropriate price index was 108% of the January 1, 2020, price level. Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Cost Retail Cost-to- Retail Ratio $ $ 48,000 520,000 Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups 32,600 312,360 28,000 6,200 5,300 13,000 28,000 609,000 13,000 622,000 Less: Net markdowns Goods available for sale $ 384,460 Cost-to-retail percentage 62% $ Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 511,500 (5,000) 4,500 4,500 X 626,500 $ $ 384,460 X 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.) Answer is complete but not entirely correct. Cost Retail Cost-to- Retail Ratio $ $ 48,000 520,000 Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) 32,600 312,360 28,000 6,200 5,300 13,000 28,000 13,000 123 48,123 123 X 32,723 $ Cost-to-retail percentage 62% X $ Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 511,500 (5,000) 4,500 123 48,246 $ $ 123 Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021. Answer is complete but not entirely correct. Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021 $ $ 61,000 28,484 Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $48,000 and a cost of $32,600 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $312,360 6,200 5,300 Retail $520,000 13,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 511,500 5,000 4,500 28,000 28,000 13,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $64,050, the cost-to-retail percentage for 2020 under the LIFO retail method was 68%, and the appropriate price index was 105% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $51,300, the cost-to-retail percentage for 2021 under the LIFO retail method was 67%, and the appropriate price index was 108% of the January 1, 2020, price level. Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Cost Retail Cost-to- Retail Ratio $ $ 48,000 520,000 Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups 32,600 312,360 28,000 6,200 5,300 13,000 28,000 609,000 13,000 622,000 Less: Net markdowns Goods available for sale $ 384,460 Cost-to-retail percentage 62% $ Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 511,500 (5,000) 4,500 4,500 X 626,500 $ $ 384,460 X 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.) Answer is complete but not entirely correct. Cost Retail Cost-to- Retail Ratio $ $ 48,000 520,000 Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) 32,600 312,360 28,000 6,200 5,300 13,000 28,000 13,000 123 48,123 123 X 32,723 $ Cost-to-retail percentage 62% X $ Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 511,500 (5,000) 4,500 123 48,246 $ $ 123 Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021. Answer is complete but not entirely correct. Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021 $ $ 61,000 28,484