Required information [The following information applies to the questions displayed below.) Raleigh Department Store uses the...
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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, 2019. Available Information follows: a. The inventory at January 1, 2019, had a retail value of $42,000 and a cost of $32,690 based on the conventional retail method. b. Transactions during 2019 were as follows: Gross purchases Purchase returns Parchans discounts Groan sales Sales returns Ingloyes discounts Freight-in Net zackups Met markdown Cost $236,760 6,200 4,700 27,000 Batail $460,000 23,000 430,000 6,000 5,000 Total ending inventory at dollar-value LIFO retail cost, 2020 Total anding inventory at dollar-value LIFO real cost, 2021 22,000 23,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2020, inventory was $53,045, the cost to retail percentage for 2020 under the LIFO retall method was 76%, and the appropriate price index was 103% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $47,170, the cost-to-retail percentage for 2021 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2020, price level. Required: 3. Assume Raleigh Department Store adopts the dollar value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021. 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, 2019. Available Information follows: a. The inventory at January 1, 2019, had a retail value of $42,000 and a cost of $32,690 based on the conventional retail method. b. Transactions during 2019 were as follows: Gross purchases Purchase returns Parchans discounts Groan sales Sales returns Ingloyes discounts Freight-in Net zackups Met markdown Cost $236,760 6,200 4,700 27,000 Batail $460,000 23,000 430,000 6,000 5,000 Total ending inventory at dollar-value LIFO retail cost, 2020 Total anding inventory at dollar-value LIFO real cost, 2021 22,000 23,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2020, inventory was $53,045, the cost to retail percentage for 2020 under the LIFO retall method was 76%, and the appropriate price index was 103% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $47,170, the cost-to-retail percentage for 2021 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2020, price level. Required: 3. Assume Raleigh Department Store adopts the dollar value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021.
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Ending Inventory Yearend Retail Prices 2017 2018 Ending Invenory at Base Year Retail P... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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