Question

Problem 9-12 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5]

Problem 9-12 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5]

Skip to question


[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:

  1. 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.

  2. Transactions during 2019 were as follows:

 


CostRetail
Gross purchases$236,780
$460,000
Purchase returns
6,200

23,000
Purchase discounts
4,700



Gross sales



430,000
Sales returns



6,000
Employee discounts



5,000
Freight-in
27,000



Net markups



22,000
Net markdowns



23,000

 
Sales to employees are recorded net of discounts.

  1. The retail value of the December 31, 2020, inventory was $53,045, the cost-to-retail percentage for 2020 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2020, price level.

  2. 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.


Problem 9-12 (Algo) Part 3

Required:
3.
 Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021.


0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Problem 9-12 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5]
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Problem 9-12 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [The following information applies to...

    Problem 9-12 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [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: The inventory at January 1, 2019, had a retail value of $37,000 and a cost of $30,090 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 177,030 $ 410,000 Purchase returns 5,700 28,000 Purchase...

  • PLEASE GIVE ME THE CORRECT ANSWER!! Raleigh Department Store uses the conventional retail method for the...

    PLEASE GIVE ME THE CORRECT ANSWER!! 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 $40,000 and a cost of $31,650 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $212,100 6,000 4,500 Retail $440,000 25,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 361,500...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...

    Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...

    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 $53,000 and a cost of $36,930 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $327,870 6,700 5,800 Retail $570,000 18,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 568,000 7,500 2,000 30, 500 33,000 18,000...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...

    Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $43,000 and a cost of $33,210 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 249,510 $ 470,000 Purchase returns 6,300 22,000 Purchase discounts 4,800 Gross sales 446,500 Sales returns 8,000 Employee discounts 4,500 Freight-in 26,500 Net markups 23,000 Net markdowns 22,000 Sales...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...

    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 $40,000 and a cost of $31,650 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $212,100 6,000 4,500 Retail $440,000 25,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 361,500 10,000 6,000 28,000 20,000 25,000 Sales...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...

    Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $43,000 and a cost of $33,210 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 249,510 $ 470,000 Purchase returns 6,300 22,000 Purchase discounts 4,800 Gross sales 446,500 Sales returns 8,000 Employee discounts 4,500 Freight-in 26,500 Net markups 23,000 Net markdowns 22,000 Sales...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...

    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 $40,000 and a cost of $31,650 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $212,100 6,000 4,500 Retail $440,000 25,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 361,500 10,000 6,000 28,000 20,000 25,000 Sales...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...

    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 $40,000 and a cost of $31,650 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $212,100 6,000 4,500 Retail $440,000 25,000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 361,500 10,000 6,000 28,000 20,000 25,000 Sales...

  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information...

    Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT