Please explain in detail
![Required Information<br>[The following Information applies to the questions displayed below.]<br>Ralelgh Department Store uses the conventional retall method for the year ended December 31, 2019. Avallable<br>Information follows:<br>a. The Inventory at January 1, 2019, had a retal value of $39,000 and a cost of $31,130 based on the conventlonal retall<br>method.<br>b. Transactions during 2019 were as follows:<br>Cost<br>Retail<br>Gross purchases<br>$200,150<br>5,900<br>$430, 000<br>Purchase returns<br>26,e00<br>Purchase discounts<br>4,400<br>Gross sales<br>397,500<br>Sales returns<br>8,000<br>Employee discounts<br>Freight-in<br>Net markups<br>Net markdowns<br>2,5ee<br>28,500<br>19,000<br>26,000<br>Sales to employees are recorded net of discounts.<br>C. The retail value of the December 31, 2020, Inventory was $49,290, the cost-to-retail percentage for 2020 under the<br>LIFO retail method was 78%, and the appropriate price Index was 106% of the January 1, 2020, price level.<br>d. The retail value of the December 31, 2021, Inventory was $46,870, the cost-to-retall percentage for 2021 under the LIFO<br>retall method was 77%, and the appropriate price index was 109% of the January 1, 2020, price level.<br>Requlred:<br>2. Estimate ending Inventory for 2019 assuming Raleigh Department Store used the LIFO retail method. (Amounts to be deducted<br>should be Indlcated with a mlnus sign.)<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_0b9cyp0-skywpgpc.png)
Extracted text: Required Information [The following Information applies to the questions displayed below.] Ralelgh Department Store uses the conventional retall method for the year ended December 31, 2019. Avallable Information follows: a. The Inventory at January 1, 2019, had a retal value of $39,000 and a cost of $31,130 based on the conventlonal retall method. b. Transactions during 2019 were as follows: Cost Retail Gross purchases $200,150 5,900 $430, 000 Purchase returns 26,e00 Purchase discounts 4,400 Gross sales 397,500 Sales returns 8,000 Employee discounts Freight-in Net markups Net markdowns 2,5ee 28,500 19,000 26,000 Sales to employees are recorded net of discounts. C. The retail value of the December 31, 2020, Inventory was $49,290, the cost-to-retail percentage for 2020 under the LIFO retail method was 78%, and the appropriate price Index was 106% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, Inventory was $46,870, the cost-to-retall percentage for 2021 under the LIFO retall method was 77%, and the appropriate price index was 109% of the January 1, 2020, price level. Requlred: 2. Estimate ending Inventory for 2019 assuming Raleigh Department Store used the LIFO retail method. (Amounts to be deducted should be Indlcated with a mlnus sign.)