Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows:

1. The inventory at January 1, 2016, had a retail value of $46,000 and a cost of $29,160 based on the conventional retail method.
2. Transactions during 2016 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, 2017, inventory was $61,800, the cost-to-retail percentage for 2017 under the LIFO retail method was 64%, and the appropriate price index was 103% of the January 1, 2017, price level.
4. The retail value of the December 31, 2018, inventory was $49,290, the cost-to-retail percentage for 2018 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2017, price level.

Required: 1. Estimate ending inventory for 2016 using the conventional retail method. 2. Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method. 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

Complete this question by entering your answers in the tabs below.

• Required 1

Estimate ending inventory for 2016 using the conventional retail method. (Amounts to be deducted should be indicated by a minus sign.)

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory	$29,160	$46,000
Add: Purchases	291,540	500,000
Add: Freight-in	27,000
Less: Purchase returns	(6,000)	(11,000)
Add: Net markups		26,000
Less: Purchase discounts	(5,100)
		561,000
Cost-to-retail percentage
Goods available for sale	$336,600	561,000
Estimated ending inventory at retail		$561,000
Estimated ending inventory at cost

• Required 2

Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method.

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory
Add: Purchases
Add: Freight-in
Less: Purchase returns
Add: Net markups
Less: Purchase discounts
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)	0	0
Cost-to-retail percentage
Estimated ending inventory at retail		$0
Estimated ending inventory at cost

• Required 3

Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

Total ending inventory at dollar-value LIFO retail cost, 2017
Total ending inventory at dollar-value LIFO retail cost, 2018