Answer:
$36,750
Explanation:
Calculation to estimate the ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method
LIFO retail method
($) Cost ($) Retail
Beginning inventory $33,210 $43,000
Add purchases $249,510 $470,000
Freight in $26,500 $0
Less: purchase returns ($6,300) ($22,000)
Purchase discount ($4,800) $0
Add net marks up $0 23,000
Less: net mark downs $0 ($22,000)
Goods available for sale (excluding beginning inventory) $264,910 $449,000
(298,120 -33,210=264,910)
(492,000-43,000=449,000)
Goods available for sale (Including beginning inventory) $298,120 $492,000
Cost to retail ratio 59%
[(264,910/449,000) *100]
Less: net sales
Sales $446,500 $0
Sales return $8,000 ($438,500)
($446,500-$438,500=$8,000)
Employee discount $0 ($4,500)
Estimated ending inventory at retail $0 $49,000
Estimated ending inventory at cost $36,750
[ 33,210 +(49,000 -43,000)*59%]
Therefore the Estimated ending inventory at cost is $36,750
