Problem $9-7($Static$)$ Retail inventory method; conventional and LIFO $[$LO$9-3,9-4]$

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Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year $2024$ operations is as follows:

a$.$ January $1,2024,$ beginning inventory had a cost of $$100,000$ and a retail value of $$150,000.$

b$.$ P$$rchases during $2024$ cost $$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 $2024$ is $$250,000.$

g$.$ Sales to customers totaled $$1,750,000$ for the year.

Problem $9-7($Static$)$ Part $1$

Required:

Estimate ending inventory and cost of goods sold using the conventional retail method.