Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows: The inventory at January 1, 2016, had a retail value of $42,000 and a cost of $32,690 based on the conventional retail method. Transactions during 2016 were as follows: Cost Retail 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. The retail value of the December 31, 2017, inventory was $53,045, the cost-to-retail percentage for 2017 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2017, price level. The retail value of the December 31, 2018, inventory was $47,170, the cost-to-retail percentage for 2018 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2017, price level. Required: 1. Estimate ending inventory for 2016 using the conventional retail method. 2. Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method. 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows: The inventory at January 1, 2016, had a retail value of $51,000 and a cost of $38,060 based on the conventional retail method. Transactions during 2016 were as follows: Cost Retail Gross purchases $ 344,940 $ 550,000 Purchase returns 6,500 16,000 Purchase discounts 5,600 Gross sales 544,000 Sales returns 5,000 Employee discounts 6,000 Freight-in 29,500 Net markups 31,000 Net markdowns 16,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2017, inventory was $60,180, the cost-to-retail percentage for 2017 under the LIFO retail method was 75%, and the appropriate price index was 102% of the January 1, 2017, price level. The retail value of the December 31, 2018, inventory was $51,450, the cost-to-retail percentage for 2018 under the LIFO retail method was 74%, and the appropriate price index was 105% of the January 1, 2017, price level.

Required:

1. Estimate ending inventory for 2016 using the conventional retail method.

2. Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method.

3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

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 $46,000 and a cost of $29,160 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 291,540 $ 500,000 Purchase returns 6,000 11,000 Purchase discounts 5,100 Gross sales 500,000 Sales returns 8,500 Employee discounts 3,500 Freight-in 27,000 Net markups 26,000 Net markdowns 11,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2020, inventory was $61,800, the cost-to-retail percentage for 2020 under the LIFO retail method was 64%, and the appropriate price index was 103% of the January 1, 2020, price level. The retail value of the December 31, 2021, inventory was $49,290, the cost-to-retail percentage for 2021 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2020, price level.

1. Estimate ending inventory for 2019 using the conventional retail method.

2. Estimate ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method

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

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows: The inventory at January 1, 2016, had a retail value of $47,000 and a cost of $30,860 based on the conventional retail method.

Transactions during 2016 were as follows:

Cost Retail

Gross purchases $ 301,860 $ 510,000

Purchase returns 6,100 12,000

Purchase discounts 5,200

Gross sales 476,000

Sales returns 8,000

Employee discounts 6,000

Freight-in 27,500

Net markups 27,000

Net markdowns 12,000

Sales to employees are recorded net of discounts. The retail value of the December 31, 2017, inventory was $92,560, the cost-to-retail percentage for 2017 under the LIFO retail method was 65%, and the appropriate price index was 104% of the January 1, 2017, price level. The retail value of the December 31, 2018, inventory was $50,290, the cost-to-retail percentage for 2018 under the LIFO retail method was 64%, and the appropriate price index was 107% of the January 1, 2017, price level.

Required: a. Estimate ending inventory for 2016 using the conventional retail method.

b. Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method.

c. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows:

The inventory at January 1, 2016, had a retail value of $53,000 and a cost of $36,930 based on the conventional retail method.

Transactions during 2016 were as follows:

Sales to employees are recorded net of discounts.

The retail value of the December 31, 2017, inventory was $61,880, the cost-to-retail percentage for 2017 under the LIFO retail method was 70%, and the appropriate price index was 104% of the January 1, 2017, price level.

The retail value of the December 31, 2018, inventory was $53,500, the cost-to-retail percentage for 2018 under the LIFO retail method was 69%, and the appropriate price index was 107% of the January 1, 2017, price level.

Required:
1. Estimate ending inventory for 2016 using the conventional retail method.
2. Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method.
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

Problem 17-7A

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.

Production Data—Bicycles Units Percentage Complete Work in process units, March 1 190 80 % Units started into production 1,400 Work in process units, March 31 310 40 %

Cost Data—Bicycles Work in process units, March 1 $19,330 Direct materials 50,000 Direct labor 26,500 Manufacturing overhead 29,900

Production Data—Tricycles Units Percentage Complete Work in process units, March 1 140 75 % Units started into production 1,000 Work in process units, March 31 60 25 %

Cost Data—Tricycles Work in process units, March 1 $6,050 Direct materials 30,400 Direct labor 14,200 Manufacturing overhead 19,800

1. Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles.

2. Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles.

3. Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles.

4. Prepare a production cost report for the month of March for the bicycles only

1. Who are winners of a move to free trades? A) Consumers of exported goods B) Producers of exported goods C) Producers of imported goods D) None of the above answers

2. The short-run shutdown condition occurs for a firm in the short-run when A) Price per unit good is equal to average variable cost per unit good B) Price per unit good is greater than average variable cost per unit good C) Price per unit good is less than average variable cost per unit good D) Price is greater than total cost.

3. Which of the following problems describes the ‘Decision Pitfalls' of a rational individual in economy? A) Ignoring implicit costs B) Failing to think at the margin C) Measuring costs or benefits proportionally D) All the above answers

4. Which of the following explanations is true? A) Higher inflation reduces the real value of money held by the public, reducing wealth and spending B) Inflation redistributes resources from less affluent people, who spend a high percentage of their disposable income, to more affluent people, who spend a smaller percentage of disposable income C) Higher inflation creates uncertainty in planning for households and firms, reducing their spending. D) All the above answers

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows:

1. The inventory at January 1, 2016, had a retail value of $37,000 and a cost of $30,090 based on the conventional retail method.
2. Transactions during 2016 were as follows:

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2017, inventory was $68,850, the cost-to-retail percentage for 2017 under the LIFO retail method was 70%, and the appropriate price index was 102% of the January 1, 2017, price level.
4. The retail value of the December 31, 2018, inventory was $40,950, the cost-to-retail percentage for 2018 under the LIFO retail method was 69%, and the appropriate price index was 105% of the January 1, 2017, price level.

Required:
1. Estimate ending inventory for 2016 using the conventional retail method.
2. Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method.
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

This week's 'HRM by the Numbers' focuses on the cost of union and non-union benefits. Use the table below to provide the correct answer for each question. Not all of the data in the table will be used. See the point value for each question. They must be answered correctly. No partial credit. They must also be rounded to the nearest hundredth which is 2 decimal points (i.e. 23.45, 53.00, 6.10) to be considered correct.

Union Costs - .5 points each

• The hourly compenstation costs of paid leave: $_____________
• The hourly compensation costs of legally required benefits" $___________

Nonunion Costs - .5 points each

• The hourly compenstation costs of paid leave: $_____________
• The hourly compensation costs of legally required benefits $___________

Comparison (Percent Cost Difference Between Union and Nonunion Benefits ​= ((Union Benefits Cost​ - Nonunion Benefits​ Cost) / Nonunion Benefits​ Cost) × ​100%

• 1 point - The percentage cost difference between union and nonunion benefits for wages and salaries______%
• 2 points - The percentage cost difference between union and nonunion benefits for paid leave and legally required benefits _____%

Table:

Fictishus Inc.

Balance Sheet

As of December 31, 2019

ASSETSLIABILITIES AND SHAREHOLDERS EQUITY

Current AssetsCurrent Liabilities

Cash   600Accounts Payable   800

Accounts Receivable   400Notes Payable   200

Inventory1,400Total Current Liabilities1,000

Investments1,200Long Term Debt2,800

Total Current Assets3,600TOTAL LIABILITIES3,800

Fixed Assets2,200

TOTAL ASSETS5,800Shareholders Equity

Common Stock2,000

Select 2019 Income Statement information:

• Revenue:$8,100

• Cost of Goods Sold:$5,400

• SG&A Expense:$1,350

• Net Income:      $810

1. What is the current ratio?

2. What are the inventory days or turns (just specify which one)?

3. What are the days receivables?

4. What is the gross profit margin percentage?

5. What is the operating profit margin percentage?

6. What is the company’s Return on Equity?