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In: Accounting
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year...
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2018 operations is as follows: January 1, 2018, beginning inventory had a cost of $240,000 and a retail value of $290,000. Purchases during 2018 cost $2,076,000 with an original retail value of $3,360,000. Freight costs were $24,000 for incoming merchandise. Net additional markups were $250,000 and net markdowns were $610,000. Based on prior experience, shrinkage due to shoplifting was estimated to be $29,000 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 2018 is $390,000. Sales to customers totaled $2,400,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method. 2. Estimate ending inventory and cost of goods sold using the LIFO retail method. (Assume stable prices.) (For all requirements, Round your intermediate calculations and final answers to whole dollars.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year...
Alquist Company uses
the retail method to estimate its ending inventory. Selected
information about its year 2021 operations is as follows:
January 1, 2021, beginning inventory had a cost of $100,000 and
a retail value of $150,000.
Purchases during 2021 cost $1,387,500 with an original retail
value of $2,000,000.
Freight costs were $10,000 for incoming merchandise.
Net additional markups were $300,000 and net markdowns were
$150,000.
Based on prior experience, shrinkage due to shoplifting was
estimated to be $15,000 of...
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year...
Alquist Company uses the retail method to estimate its ending
inventory. Selected information about its year 2018 operations is
as follows:
January 1, 2018, beginning inventory had a cost of $120,000 and
a retail value of $170,000.
Purchases during 2018 cost $1,332,000 with an original retail
value of $2,170,000.
Freight costs were $12,000 for incoming merchandise.
Net additional markups were $100,000 and net markdowns were
$170,000.
Based on prior experience, shrinkage due to shoplifting was
estimated to be $17,000 of...
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year...
Alquist Company uses the retail method to estimate its ending
inventory. Selected information about its year 2018 operations is
as follows:
January 1, 2018, beginning inventory had a cost of $162,000 and
a retail value of $210,000.
Purchases during 2018 cost $1,502,000 with an original retail
value of $2,380,000.
Freight costs were $16,000 for incoming merchandise.
Net additional markups were $210,000 and net markdowns were
$390,000.
Based on prior experience, shrinkage due to shoplifting was
estimated to be $21,000 of...
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year...
Alquist Company uses the retail method to estimate its ending
inventory. Selected information about its year 2018 operations is
as follows:
January 1, 2018, beginning inventory had a cost of $160,000 and
a retail value of $220,000.
Purchases during 2018 cost $1,663,000 with an original retail
value of $2,440,000.
Freight costs were $17,000 for incoming merchandise.
Net additional markups were $215,000 and net markdowns were
$255,000.
Based on prior experience, shrinkage due to shoplifting was
estimated to be $22,000 of...
The XYZ Company uses the conventional retail inventory method to estimate ending inventory for its monthly...
The XYZ Company uses the conventional retail inventory method to
estimate ending inventory for its monthly financial statements and
presents the following data for one department for February 2020.
Present a schedule that shows the ending inventory at cost and
highlight that cell with color and a thick outside border. Label
each column and row clearly so your workpaper can be used by other
people in Marquette's accounting department. Present the cost to
retail percentage as a percentage with two...
Noa Corporations uses the retail inventory method to estimate its ending inventory. The following information relates...
Noa Corporations uses the retail inventory method to estimate
its ending inventory. The following information relates to Noa
Corporation’s inventory at both cost and retail for the current
year.
Description
Cost
Retail
Beginning Inventory
$55,000
$78,500
Purchases
250,000
325,000
Purchase discount
10,000
Freight-In
5,000
Additional markups
24,000
Markup cancellations
7,000
Markdowns
12,000
Markdown cancellations
3,500
Sales
400,000
Instructions: Answer each of the following questions.
What is the ending inventory at retail?
If the ending inventory is to be valued at...
Retail inventory method; various cost methods Sparrow Company uses the retail inventory method to estimate ending...
Retail inventory method; various cost methods
Sparrow Company uses the retail inventory method to estimate
ending inventory and cost of goods sold. Data for 2016 are as
follows:
Cost
Retail
Beginning Inventory
$90,000
$180,000
Purchases
$355,000
$581,000
Freight-in
$9,000
Purchase Returns
$7,000
$11,000
Net Markups
$16,000
Net Markdowns
$12,000
Normal Spoilage
$3,000
Abnormal Spoilage
$4,800
$8,000
Sales
$540,000
Sales Returns
$10,000
The company records sales net of employee discounts. Discounts
for 2016 totaled $4,000.
Required:
Estimate Sparrow’s ending inventory and...
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold....
Sparrow Company uses the retail inventory method to estimate
ending inventory and cost of goods sold. Data for 2018 are as
follows:
Cost
Retail
Beginning inventory
$
89,000
$
179,000
Purchases
352,000
579,000
Freight-in
8,900
Purchase returns
6,900
10,900
Net markups
15,900
Net markdowns
11,900
Normal spoilage
2,900
Abnormal spoilage
4,512
7,900
Sales
539,000
Sales returns
9,900
The company records sales net of employee discounts. Discounts for
2018 totaled $3,900.
Required:
1. Estimate Sparrow’s ending inventory and cost of
goods...
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold....
Sparrow Company uses the retail inventory method to estimate
ending inventory and cost of goods sold. Data for 2016 are as
follows:
Cost Reatail
Begining inventory. $90,000. $180,000
Purchases 335,000. 580,000
Freight in 9,000
Purchase returns. 7,000 11,000
Net markups 16,000
Net markdowns 12,000
Normal spoilage 3,000
Abnormal spoliage. 4,800 8,000
Sales 540,000
Sales returns 10,000
The company records sales net of employee discounts. Discounts
for 2016 totaled $4,000.
Required:
Estimate Sparrow’s ending inventory and cost of goods sold...
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold....
Sparrow Company uses the retail inventory method to estimate
ending inventory and cost of goods sold. Data for 2021 are as
follows: Cost Retail Beginning inventory $ 83,000 $ 173,000
Purchases 368,000 573,000 Freight-in 8,300 Purchase returns 6,300
10,300 Net markups 15,300 Net markdowns 11,300 Normal spoilage
2,300 Abnormal spoilage 4,405 7,300 Sales 533,000 Sales returns
9,300 The company records sales net of employee discounts. Employee
discounts for 2021 totaled $3,300.
Required: 1. Estimate Sparrow’s ending inventory and cost of...
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