Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows:

1. The inventory at January 1, 2019, had a retail value of $46,000 and a cost of $29,160 based on the conventional retail method.
2. Transactions during 2019 were as follows:

	Cost			Retail
Gross purchases	$	291,540		$	500,000
Purchase returns		6,000			11,000
Purchase discounts		5,100
Gross sales					500,000
Sales returns					8,500
Employee discounts					3,500
Freight-in		27,000
Net markups					26,000
Net markdowns					11,000

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2020, inventory was $61,800, the cost-to-retail percentage for 2020 under the LIFO retail method was 64%, and the appropriate price index was 103% of the January 1, 2020, price level.
4. The retail value of the December 31, 2021, inventory was $49,290, the cost-to-retail percentage for 2021 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2020, price level.

UPILI 013 Cost Retail Cost-to- Retail Ratio $ $ 46,000 500,000 Beginning inventory Add: Purchases Less: Purchase discounts Less: Purchase returns Add: Freight-in Add: Net markups 29,160 291,540 (5,100) (6,000) 27,000 (11,000) 26,000 561,000 (11,000) 550,000 Goods available for sale $ 336,600 Cost-to-retail percentage 61% X Less: Net sales Sales $ 500,000 (8,500) (3,500) Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 62,000 612,000 $ $ 37,944 Retail Cost-to-Retail Ratio $ $ 46,000 500,000 Cost 29,160 291,540 (5,100) (6,000)| 27,000 Sook (11,000) Beginning inventory Add: Purchases Less: Purchase discounts Less: Purchase discounts Add: Freight-in Add: Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) rences 26,000 (11,000) 504,000 550,000 $ 29,160 Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 550,000 $ 38,920 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $61,800, the cost-to- retail percentage for 2020 under the LIFO retail method was 64%, and the appropriate price index was 103% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $49,290, the cost-to- retail percentage for 2021 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2020, price level. 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 $ $ 37,589 X 28,574