Question

Required Information 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 $39,000 and a cost of $31,130 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost Retail Gross purchases $200,150 $430,000 Purchase returns 5,000 26,000 Purchase discounts 4,400 Gross sales 397,500 Sales returns 8,000 Employee discounts 2,500 Freight-in 28,500 Net markups 19,000 Net markdowns 26,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $49,290, the cost-to-retail percentage for 2020 under the LIFO retail method was 78%, and the appropriate price index was 106% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $46,870, the cost-to-retail percentage for 2021 under the LIFO retail method was 77%, and the appropriate price index was 109% 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

          Required Information
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 $39,000 and a cost of $31,130 based on the conventional retail method.
b. Transactions during 2019 were as follows:
Cost Retail
Gross purchases $200,150 $430,000
Purchase returns 5,000 26,000
Purchase discounts 4,400
Gross sales 397,500
Sales returns 8,000
Employee discounts 2,500
Freight-in 28,500
Net markups 19,000
Net markdowns 26,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2020, inventory was $49,290, the cost-to-retail percentage for 2020 under the LIFO retail method was 78%, and the appropriate price index was 106% of the January 1, 2020, price level.
d. The retail value of the December 31, 2021, inventory was $46,870, the cost-to-retail percentage for 2021 under the LIFO retail method was 77%, and the appropriate price index was 109% 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

Required Information
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 39,000 and a cost of31,130 based on the conventional retail method.
b. Transactions during 2019 were as follows:
Cost Retail
Gross purchases 200,150430,000
Purchase returns 5,000 26,000
Purchase discounts 4,400
Gross sales 397,500
Sales returns 8,000
Employee discounts 2,500
Freight-in 28,500
Net markups 19,000
Net markdowns 26,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2020, inventory was 49,290, the cost-to-retail percentage for 2020 under the LIFO retail method was 78%, and the appropriate price index was 106% of the January 1, 2020, price level.
d. The retail value of the December 31, 2021, inventory was46,870, the cost-to-retail percentage for 2021 under the LIFO retail method was 77%, and the appropriate price index was 109% 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

Added by Donald Y.

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