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: 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

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: 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

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Description: !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 2024operations is as follows:a. January 1, 2024, b

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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