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 $130,000 and a retail value of $180,000. Purchases during 2018 cost $2,027,000 with an original retail value of $3,080,000. Freight costs were $13,000 for incoming merchandise. Net additional markups were $240,000 and net markdowns were $320,000. Based on prior experience, shrinkage due to shoplifting was estimated to be $18,000 of retail value. 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 $280,000. Sales to customers totaled $2,600,000 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.)
Conventional Retail Method | LIFO Retail Method | |
Estimated ending inventory at retail | ||
Estimated ending inventory at cost | ||
Estimated cost of goods sold |
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 $130,000...
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 $220,000 and a retail value of $350,000. Purchases during 2018 cost $2,130,000 with an original retail value of $3,500,000. Freight costs were $30,000 for incoming merchandise. Net additional markups were $400,000 and net markdowns were $300,000. Based on prior experience, shrinkage due to shoplifting was estimated to be $35,000 of...
Jones Company uses the retail method to estimate its ending inventory. Selected information about its year 2015 operations is as follows: a. January 1, 2015 beginning inventory had a cost of $10,000 and a retail value of $15,000. b. Purchases during 2015 cost $138,750 with an original retail value of $200,000 c. Freight costs were $1,000 for incoming merchandise and $2,500 for outgoing (sold) merchandise d. Net additional markups were $30,000 and net markdowns were $15,000 Ve. Based on prior...
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 2021 operations is as follows: a. January 1, 2021, beginning inventory had a cost of $208,000 and a retail value of $200,000. b. Purchases during 2021 cost $1,617,000 with an original retail value of $2,335,000. c. Freight costs were $15,000 for incoming merchandise. d. Net additional markups were $340,000 and net markdowns were...
On January 1, 2018, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 2019 Retail Retail Cost Cost Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Normal spoilage Price Index: $162,500 250,000 800,000 1,084,000 $680,000 $1,063,000 4,300 7,000 12,500 2,000 2,000 12,150 6,900 4,750 950,000 22,500 4,200 11,800 8,000 722,000...
Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost Retail Beginning inventory $ 19,000 $ 27,000 Purchases 109,600 172,000 Freight-in 7,600 Purchase returns 7,500 10,500 Net markups 9,500 Net markdowns 6,500 Normal spoilage 4,900 Net sales 159,000 Required: Complete the table below to estimate the ending inventory and cost of goods sold for 2018, applying the conventional retail method Cost Retail Cost-to-Retail Ratio Beginning...
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost Retail 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...
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: 33 Retail Cost $ 93,000 $183,000 583,000 Beginning inventory Purchases 362,000 9,300 7,300 Freight-in Purchase returns 11,300 20 Net markups 16,300 12,300 3,300 8,300 polnts Net markdowns Normal spoilage Abnormal spoilage 4,884 X 0228:31 Sales 543,000 Sales returns 10,300 The company records sales net of employee discounts. Discounts for 2018 totaled $4,300. Required: 1. Estimate Sparrow's ending inventory...
Almaden Valley Variety Store uses the retail Inventory method to estimate ending Inventory and cost of goods sold. Data for 2021 are as follows: Cont $ 30.000 120,600 2.230 4.000 Retail $ 30.000 183,000 Beginning inventory Purchases Preight-in Purchase returns Net Darkups Net markdowns Normal spoilage Net sales Bock 10,500 15,000 12.000 6,000 170,000 eferences Required: Complete the table below to estimate the ending inventory and cost of goods sold for 2021, applying the conventional retail method using the information...
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2018 5 Retail Merchandise inventory, January 1, 2018 Purchases Freight-in Net markups Net markdowns Net sales $300,000 $291,000 581,000 928,009 19,000 15 points 31,000 5,000 910,000 Skipped Required Determine the December 31, 2018, inventory by applying the conventional retail method. eBook t-to Cost Retail Beginning inventory Plus: Purchases Print Freight-in Net markups Less Net markdowns Goods available for sale Cost-to-retail percentage Less...
On January 1, 2018, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail and cost indexes for 2018 and 2019 are as follows: 2018 2019 Cost Retail Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Normal spoilage Price Index: January 1, 2018 December 31, 2018 December 31, 2019 Cost Retail $152,750 $235,000 537,000 770,000 5,000 3, 150 6,300 6,750 4,600 600,000...