Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $312.000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 of retail value. f Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separat account at the net selling price. The balance in this account at the end of 2024 is $430,000 g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method.

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 $312.000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 of retail value. f Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separat account at the net selling price. The balance in this account at the end of 2024 is $430,000 g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

dont give answer in image format

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 $312,000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 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 $430,000. g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional Retail Method
Transcribed Image Text: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 $312,000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 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 $430,000. g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional Retail Method
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 $312,000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 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 $430,000. g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional Retail Method
Transcribed Image Text: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 $312,000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 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 $430,000. g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional Retail Method
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS