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...

60.1K

Verified Solution

Question

Accounting

Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2024 operations is as follows: January 1, 2024, beginning inventory had a cost of $254,000 and a retail value of $240,000. Purchases during 2024 cost $1,547,000 with an original retail value of $2,810,000. Freight costs were $19,000 for incoming merchandise. Net additional markups were $200,000 and net markdowns were $400,000. Based on prior experience, shrinkage due to shoplifting was estimated to be $24,000 of retail value. Merchandise is sold to employees at a 25% 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. Sales to customers totaled $2,020,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method.

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

Q

After drilling generally casing is done. Assume in one well the casing failure has taken place...

Civil Engineering
Q

A proton a deuteron and an alpha particle w same kinetic energy enter in a...

Physics
Q

A metal circular disk whose area is 143 cm is used as aknockout on an...

Basic Math
Q

Yolanda the trainer has two solo workout plans that she offers her clients: Plan A...

Basic Math
Q

Exponential models and applicationsThe number of bacteria in a culture is given by the functionn(t)...

Basic Math
Q

Given f x 3 cos x 16 sina and f 0 3 find f x

Calculus
Q

calculating the cost of equity the cost of equity is a key component in calculating...

Accounting
Q

Question 17 5 pts Hoppy Corporation compares a monthly flexible budget based on actual operating...

Accounting
Q

Special Order William A. Smith Pest Control, Inc. (WASP) currently provides pest control services...

Accounting
Q

Crystal owns 192 shares of carson incorporated stock

Accounting
Q

Record each transaction, from March 1st-Dec 31st Donnie Hilfiger has two classes of...

Accounting
Q

FRS 21 The Effects of Changes in Foreign Exchange Rates requires different translation rules for...

Accounting