PI Required information [The following information applies to the questions displayed below.] Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2024 operations is as follows: a. January 1, 2024, beginning inventory had a cost of $210,000 and a retail value of $260,000. b. Purchases during 2024 cost $1,467,000 with an original retail value of $2,330,000. c. Freight costs were $21,000 for incoming merchandise. d. Net additional markups were $240,000 and net markdowns were $170,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $26,000 of retail value. f. Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separate account at the net selling price. The balance in this account at the end of 2024 is $360,000. g. Sales to customers totaled $1,860,000 for the year. Required: 2. Estimate ending inventory and cost of goods sold using the LIFO retail method. Note: Assume stable prices. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold LIFO Retail Method W
PI Required information [The following information applies to the questions displayed below.] Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2024 operations is as follows: a. January 1, 2024, beginning inventory had a cost of $210,000 and a retail value of $260,000. b. Purchases during 2024 cost $1,467,000 with an original retail value of $2,330,000. c. Freight costs were $21,000 for incoming merchandise. d. Net additional markups were $240,000 and net markdowns were $170,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $26,000 of retail value. f. Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separate account at the net selling price. The balance in this account at the end of 2024 is $360,000. g. Sales to customers totaled $1,860,000 for the year. Required: 2. Estimate ending inventory and cost of goods sold using the LIFO retail method. Note: Assume stable prices. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold LIFO Retail Method W
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![PI
Required information
[The following information applies to the questions displayed below.]
Alquist Company uses the retail method to estimate its ending inventory. Selected
information about its year 2024 operations is as follows:
a. January 1, 2024, beginning inventory had a cost of $210,000 and a retail value
of $260,000.
b. Purchases during 2024 cost $1,467,000 with an original retail value of
$2,330,000.
c. Freight costs were $21,000 for incoming merchandise.
d. Net additional markups were $240,000 and net markdowns were $170,000.
e. Based on prior experience, shrinkage due to shoplifting was estimated to be
$26,000 of retail value.
f. Merchandise is sold to employees at a 20% of selling price discount. Employee
sales are recorded in a separate account at the net selling price. The balance in
this account at the end of 2024 is $360,000.
g. Sales to customers totaled $1,860,000 for the year.
Required:
2. Estimate ending inventory and cost of goods sold using the LIFO retail method.
Note: Assume stable prices.
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
LIFO Retail
Method
W](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb5533c6-b742-4ecc-b70b-06ac48b46974%2Fb91096e5-b0d6-417e-be89-40f59e9e282a%2F4h8b9e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PI
Required information
[The following information applies to the questions displayed below.]
Alquist Company uses the retail method to estimate its ending inventory. Selected
information about its year 2024 operations is as follows:
a. January 1, 2024, beginning inventory had a cost of $210,000 and a retail value
of $260,000.
b. Purchases during 2024 cost $1,467,000 with an original retail value of
$2,330,000.
c. Freight costs were $21,000 for incoming merchandise.
d. Net additional markups were $240,000 and net markdowns were $170,000.
e. Based on prior experience, shrinkage due to shoplifting was estimated to be
$26,000 of retail value.
f. Merchandise is sold to employees at a 20% of selling price discount. Employee
sales are recorded in a separate account at the net selling price. The balance in
this account at the end of 2024 is $360,000.
g. Sales to customers totaled $1,860,000 for the year.
Required:
2. Estimate ending inventory and cost of goods sold using the LIFO retail method.
Note: Assume stable prices.
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
LIFO Retail
Method
W
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