Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. alquist company uses the retail method to estimate

Alquist Company uses the retail method to estimate its ending inventory. Selected information about its...

50.1K

Verified Solution

Question

Accounting

image

Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2018 operations is as follows: a. January 1, 2018, beginning inventory had a cost of $100,000 and a retail value of $150,000. b. Purchases during 2018 cost $1,387,500 with an original retail value of $2,000,000. c. Freight costs were $10,000 for incoming merchandise. d. Net additional markups were $300,000 and net markdowns were $150,000 e. Based on prior experience, shrinkage due to shoplifting was estimated to be $15,000 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 2018 is $250,000. g. Sales to customers totaled $1,750,000 for the year Required 1. Estimate ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail percentage calculation to whole dollars.) 2. Estimate ending inventory and cost of goods sold using the LIFO retail method. (Assume stable prices.) Conventional LIFO Retail Retail Method Method Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students