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Required Information

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

$[$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 $2024$ operations is as follows:

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

b$.$ Purchases 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 $2$

$2.$ Estimate ending inventory and cost of goods sold using the LIFO retail method.

Note: Assume stable prices.

$\backslash$table$[[,\backslash$table$[[$LiFo Retail$],[$Method$]]],[$Estimated ending inventory at retail,$],[$Estimated ending inventory at cost$,],[$Estimated cost of goods sold,$]]$