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Problem 9-7 (Algo) Retail inventory method; conventional and LIFO [LO9-3, 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:

January 1, 2024, beginning inventory had a cost of $201,000 and a retail value of $250,000.

Purchases during 2024 cost $1,429,000 with an original retail value of $2,350,000.

Freight costs were $20,000 for incoming merchandise.

Net additional markups were $150,000 and net markdowns were $200,000.

Based on prior experience, shrinkage due to shoplifting was estimated to be $25,000 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 2024 is $350,000.

Sales to customers totaled $1,800,000 for the year.

Problem 9-7 (Algo) Part 2

Required:

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