D E FL 345 5 1/1/19 inventory retail value 6 1/1/19 inventory cost 7 8 Transactions during 2019: 9 10 Gross purchases 11 Purchase returns 12 Purchase discounts 13 Sales 14 Sales returns 15 Employee discounts 16 Freight-in 17 Net markups 18 Net markdowns 19 RALEIGH DEPARTMENT STORE SS 45,000 27,500 Cost $. 282,000 $ Retail 490,000 6,500 5,000 10,000 492,000 5,000 3,000 26,500 25,000 10,000 20 12/31/20 inventory retail value $ 56,100 21 2020 cost-to-retail percentage under LIFO retail method 22 Appropriate price index of the January 1, 2020 price level 23 24 12/31/21 inventory retail value 62% 102% $ 48,300 25 2021 cost-to-retail percentage under LIFO retail method 61% 26 Appropriate price index of the January 1, 2020 price level 105% 27 B Conventional Retail Method Cost Retail Beginning inventory Plus: Purchases Freight-in Less: Purchase returns Purchase discounts Plus: Net markups Cost-to-retail percentage: Less: Net markdowns Goods available for sale Less: Net Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost S Try again! Try again! X fx B C E LIFO Retail Method F G H Beginning inventory Plus: Purchases Freight-in Less: Purchase returns Purchase discounts Plus: Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage Less: Net Sales Sales returns Employee discounts $ #DIV/0! Cost Retail $ Estimated ending inventory at cost: Try again! Retail Cost Beginning inventory Current period's layer Total #DIV/0! #DIV/0! Try again! #DIVIO SP09-01 Given P09-01 SP09-07 Given P09-07 SP09-12 Given P09-12 55 56 Requirement 3: 57 58 RALEIGH DEPARTMENT STORE Dollar-Value LIFO Retail Method 59 60 61 Ending Inventory Inventory Layers 62 Ending Inventory at 63 Year-end Retail Prices 64 2020 65 66 67 68 69 70 71 Total ending inventory at dollar-value LIFO retail cost 72 Retail Prices Cost $ Total ending inventory at dollar-value LIFO retail cost $ Try again! 2021 $ #DIV/0! #DIV/0! #DIV/O! Inventory Layers at Base Year at Base Year Converted To Retail Prices 72