Required: 1. Estimate ending Inventory for 2022 using the conventional retall method. Note: Amounts to be deducted should be Indicated with a minus sign. Round your cost-to-retall percentage calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales > Answer is complete but not entirely correct. Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost S Cost 36,200 s 333,900 29,000 (6,400) (5,500) 0 0 S 387,200 S 500,000 (8,000) 5,500 S 59,200 S Retail 50,000 540,000 0 (15,000) 0 30,000 0 605,000 (15,000) 590,000 5,500 92,500 Cost-to- Retail Ratio 64.00%
Required: 1. Estimate ending Inventory for 2022 using the conventional retall method. Note: Amounts to be deducted should be Indicated with a minus sign. Round your cost-to-retall percentage calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales > Answer is complete but not entirely correct. Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost S Cost 36,200 s 333,900 29,000 (6,400) (5,500) 0 0 S 387,200 S 500,000 (8,000) 5,500 S 59,200 S Retail 50,000 540,000 0 (15,000) 0 30,000 0 605,000 (15,000) 590,000 5,500 92,500 Cost-to- Retail Ratio 64.00%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 6E: Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows:...
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What is the employee discount cost under retail?
Transcribed Image Text:Required:
1. Estimate ending Inventory for 2022 using the conventional retall method.
Note: Amounts to be deducted should be Indicated with a minus sign. Round your cost-to-retall percentage calculation to 2
decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.
Beginning inventory
Add: Purchases
Add: Freight-in
Less: Purchase returns
Less: Purchase discounts
Add: Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage
Less: Net sales
> Answer is complete but not entirely correct.
Sales
Sales returns
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost
S
Cost
36,200 S
333,900
29,000
(6,400)
(5,500)
0
0
S 387,200
S 500,000
(8,000)
5,500
S 59,200
Retail
50,000
540,000
0
(15,000)
0
30,000
0
605,000
(15,000)
590,000
5,500
S 92,500
Cost-to-
Retail
Ratio
64.00%
![Required Information
[The following information applies to the questions displayed below.]
Raleigh Department Store uses the conventional retall method for the year ended December 31, 2022. Available
Information follows:
a. The Inventory at January 1, 2022, had a retall value of $50,000 and a cost of $36,200 based on the conventional retail
method.
b. Transactions during 2022 were as follows:
Gross purchases
Purchase returns
Purchase discounts
Sales
sales returns
Employee discounts
Freight-in
Net markups
Net markdowns
Cost
$ 333,900
6,400
5,500
29,000
Retail
$ 540,000
15,000
500,000
8,000
5,500
30,000
15,000
Sales to employees are recorded net of discounts.
c. The retall value of the December 31, 2023, Inventory was $104,325, the cost-to-retail percentage for 2023 under the
LIFO retall method was 70%, and the appropriate price Index was 107% of the January 1, 2023, price level.
d. The retall value of the December 31, 2024, Inventory was $53,350, the cost-to-retall percentage for 2024 under the
LIFO retall method was 69%, and the appropriate price Index was 110% of the January 1, 2023, price level.
Required:
1. Estimate ending Inventory for 2022 using the conventional retall method.
Note: Amounts to be deducted should be Indicated with a minus sign. Round your cost-to-retall percentage calculation to 2
decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F969dc51c-cfbc-4a88-8223-4a4d6f7856c4%2F3fe173dc-0a20-4e1b-882a-a3cf44f8b1b2%2Fxx8o7uo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Raleigh Department Store uses the conventional retall method for the year ended December 31, 2022. Available
Information follows:
a. The Inventory at January 1, 2022, had a retall value of $50,000 and a cost of $36,200 based on the conventional retail
method.
b. Transactions during 2022 were as follows:
Gross purchases
Purchase returns
Purchase discounts
Sales
sales returns
Employee discounts
Freight-in
Net markups
Net markdowns
Cost
$ 333,900
6,400
5,500
29,000
Retail
$ 540,000
15,000
500,000
8,000
5,500
30,000
15,000
Sales to employees are recorded net of discounts.
c. The retall value of the December 31, 2023, Inventory was $104,325, the cost-to-retail percentage for 2023 under the
LIFO retall method was 70%, and the appropriate price Index was 107% of the January 1, 2023, price level.
d. The retall value of the December 31, 2024, Inventory was $53,350, the cost-to-retall percentage for 2024 under the
LIFO retall method was 69%, and the appropriate price Index was 110% of the January 1, 2023, price level.
Required:
1. Estimate ending Inventory for 2022 using the conventional retall method.
Note: Amounts to be deducted should be Indicated with a minus sign. Round your cost-to-retall percentage calculation to 2
decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.
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