[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 $46,000 and a cost of $29,160 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 $ 291,540 6,000 5,100 27,000 Retail $ 500,000 11,000 500,000 8,500 3,500 26,000 11,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $61,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 64%, 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 $49,290, the cost-to-retail percentage for 2024 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2023, price level.

[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 $46,000 and a cost of $29,160 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 $ 291,540 6,000 5,100 27,000 Retail $ 500,000 11,000 500,000 8,500 3,500 26,000 11,000 Net markups Net markdowns Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $61,800, the cost-to-retail percentage for 2023 under the LIFO retail method was 64%, 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 $49,290, the cost-to-retail percentage for 2024 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2023, price level.

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....

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