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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,

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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 $52,000 and a cost of $39,960 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $ 356,160 6,600 5,700 Retail $560,000 17,000 Gross purchases Purebase returns Purebase discounts Gross sales Sales returns Esployee discounts Freight-in Net markup Net markdowns 551,500 8,000 2,500 30,000 32,000 17,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $71,070, the cost-to-retail percentage for 2020 under the LIFO retail method was 76%, 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 $52,470, the cost-to-retail percentage for 2021 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2020, price level. 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 $ 52,000 560,000 DO 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) 39,960 356,160 30,000 6,600 5,700 17,000 Oo 32,000 17,000 558,000 610,000 373,860 $ 413,820 Cost-to-retail percentage 67% IS Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost 551,500 (8.000) 2,500 (546,000) $ 64,000 $ 87,120

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