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 $46,000 and a cost of $29,160 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $291,540 6,000 Retail $500,000 11,000 5,100 Grobe purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 500,000 8,500 3,500 27,000 26,000 11,000 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: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a inus sian) Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with minus sign.) Cost Retail Cost-to-Retail Ratio Beginning inventory 0 $ Goods available for sale 0 0 Cost-to-retall percentage Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost $ 0 CP 7 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 ot January 1, 2019. hod a retail value of $46,000 and a cost of $29,160 based on the conventional retail method b. Transactions during 2019 were as follows: Cost $291,540 6,000 5, 100 Retail $500,000 11,000 Cross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Niet markups Net markdowns 500,000 8,500 3,500 27,000 26,000 11,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $61,800, the cost-to-retall 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 od ob 291,590 6,000 5.100 $500,000 11,000 Purchase returns Purchase disgounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 500,000 8,500 3,500 27,000 26,000 11,000 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. Total ending inventory at dollar-value LIFO retail cost. 2020 Total ending inventory at dollar-value LIFO retail cost. 2021
