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WHat is the employee discount under retail using the LIFO retail method

WHat is the employee discount under retail using the LIFO retail method

Intermediate Accounting: Reporting And Analysis
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 14RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...
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WHat is the employee discount under retail using the LIFO retail method

Required: 2. Estimate ending Inventory for 2022 assuming Raleigh Department Store used the LIFO retall method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retall percentage calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Answer is complete but not entirely correct. Less: Purchase discounts Add: 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 Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Cost $ 36,200 333,900 29,000 (6,400) (5,500) 0 0 351,000 $ 387,200 500,000 8,000 5,500 $ 63,825 S Retail 50,000 540,000 0 (15,000) 0 30,000 (15,000) 540,000 590,000 5,500 x 92,500 Cost-to- Retail Ratio 65.00%
Transcribed Image Text:Required: 2. Estimate ending Inventory for 2022 assuming Raleigh Department Store used the LIFO retall method. Note: Amounts to be deducted should be indicated with a minus sign. Round your cost-to-retall percentage calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar. Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Answer is complete but not entirely correct. Less: Purchase discounts Add: 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 Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Cost $ 36,200 333,900 29,000 (6,400) (5,500) 0 0 351,000 $ 387,200 500,000 8,000 5,500 $ 63,825 S Retail 50,000 540,000 0 (15,000) 0 30,000 (15,000) 540,000 590,000 5,500 x 92,500 Cost-to- Retail Ratio 65.00%
Required Information [The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retall method for the year ended December 31, 2022. Available Information follows: a. The Inventory at January 1, 2022, had a retall value of $50,000 and a cost of $36,200 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 Net markups Net markdowns Cost $ 333,900 6,400 5,500 29,000 Retail $ 540,000 15,000 500,000 8,000 5,500 30,000 15,000 Sales to employees are recorded net of discounts. c. The retall value of the December 31, 2023, Inventory was $104,325, the cost-to-retail percentage for 2023 under the LIFO retall method was 70%, and the appropriate price Index was 107% of the January 1, 2023, price level. d. The retall value of the December 31, 2024, Inventory was $53,350, the cost-to-retall percentage for 2024 under the LIFO retall method was 69%, and the appropriate price Index was 110% of the January 1, 2023, price level. Required: 1. Estimate ending Inventory for 2022 using the conventional retall method. Note: Amounts to be deducted should be Indicated with a minus sign. Round your cost-to-retall percentage calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.
Transcribed Image Text:Required Information [The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retall method for the year ended December 31, 2022. Available Information follows: a. The Inventory at January 1, 2022, had a retall value of $50,000 and a cost of $36,200 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 Net markups Net markdowns Cost $ 333,900 6,400 5,500 29,000 Retail $ 540,000 15,000 500,000 8,000 5,500 30,000 15,000 Sales to employees are recorded net of discounts. c. The retall value of the December 31, 2023, Inventory was $104,325, the cost-to-retail percentage for 2023 under the LIFO retall method was 70%, and the appropriate price Index was 107% of the January 1, 2023, price level. d. The retall value of the December 31, 2024, Inventory was $53,350, the cost-to-retall percentage for 2024 under the LIFO retall method was 69%, and the appropriate price Index was 110% of the January 1, 2023, price level. Required: 1. Estimate ending Inventory for 2022 using the conventional retall method. Note: Amounts to be deducted should be Indicated with a minus sign. Round your cost-to-retall percentage calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34) and final answers to the nearest whole dollar.
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