! 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, 2022. Available information follows: a. The inventory at January 1, 2022, had a retail value of $52,000 and a cost of $39,960 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 Cost $ 356,160 6,600 5,788 30,000 Beginning inventory Retail $ 560,000 17,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023. price level. 551,500 8,000 2,500 Cost Required: 1. Estimate ending inventory for 2022 using the conventional retail method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. 32,000 17,000 Retail Cost-to-Retail Ratio
! 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, 2022. Available information follows: a. The inventory at January 1, 2022, had a retail value of $52,000 and a cost of $39,960 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 Cost $ 356,160 6,600 5,788 30,000 Beginning inventory Retail $ 560,000 17,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $71,070, the cost-to-retail percentage for 2023 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,470, the cost-to-retail percentage for 2024 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2023. price level. 551,500 8,000 2,500 Cost Required: 1. Estimate ending inventory for 2022 using the conventional retail method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. 32,000 17,000 Retail Cost-to-Retail Ratio
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 14RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...
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