P $9-12$

Retail inventory

method; various

applications

L$09-3$ through

L$09-5$

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 $$45,000$ and a cost of $$27,500$ based on the conven$-$

tional retail method.

b$.$ Transactions during $2022$ were as follows:

Sales to employees are recorded net of discounts.

c$.$ The retail value of the December $31,2023,$ inventory was $$56,100,$ the cost$-$to$-$retail percentage for $2023$

under the LIFO retail method was $62\%,$ and the appropriate price index was $102\%$ of the January $1,2023,$

price level.

d$.$ The retail value of the December $31,2024,$ inventory was $$48,300,$ the cost$-$to$-$retail percentage for $2024$

under the LIFO retail method was $61\%,$ and the appropriate price index was $105\%$ of the January $1,2023,$

price level.

Required:

Estimate ending inventory for $2022$ using the conventional retail method.

Estimate ending inventory for $2022$ assuming Raleigh Department Store used the LIFO retail method.

Assume Raleigh Department Store adopts the dollar$-$value LIFO retail method on January $1,2023.$ Estimate

ending inventory for $2023$ and $2024.$