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Required information The following Information applies to the questions displayed below) Raleigh Department Store uses the conventional retail method for the year ended December 31,
Required information The following Information applies to the questions displayed below) 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: Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost Retail $312,360 $520,000 6,200 13,eee 5,300 511,500 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.) YUCU. Required information Cost Retail Cost-to-Retail Ratio Beginning inventory Goods available for sale $ 0 0 Cost-to-retail percentage Less: Net sales Sales Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 0 2. Estimate ending Inventory for 2019 assuming Raleigh Department Store used the LIFO retall method (Amounts to be deducted should be indicated with a minus sign.) 3 Cost Retail Cost-to-Retail Ratio Beginning inventory Inces Goods available for sale (excluding beginning inventory) Goods wailable for sale (including beginning inventory) $ O Cost-to-retail percentago Activate Windows Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) $ 0 0 Cost-to-retail percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 0 Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending Inventory for 2020 and 2021 Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar value LIFO retail cost, 2021
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