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Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year operations is as follows:
a January beginning inventory had a cost of $ and a retail value of $
b Purchases during cost $ with an original retail value of $
c Freight costs were $ for incoming merchandise.
d Net additional markups were $ and net markdowns were $
e Based on prior experience, shrinkage due to shoplifting was estimated to be $ of retail value.
f Merchandise is sold to employees at a 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 is $
g Sales to customers totaled $ for the year.
Required:
Estimate ending inventory and cost of goods sold using the conventional retail method.
tabletableConventionalRetail MethodEstimated ending inventory at retail,Estimated ending inventory at costEstimated cost of goods sold,
