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Required Information

$[The$ following information applies $to$ the questions displayed below.$]$

Alquist Company uses the retall method $to$ estimate its ending Inventory. Selected information about its year $2024$

operations $isas$ follows:

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

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

$c.$ Freight costs were $$20,000$ for Incoming merchandise.

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

$e.$ Based $on$ prior experience, shrinkage due $to$ shoplifting was estimated $tobe$ $$25,000of$ retall value.

$f.$ Merchandise $is$ sold $to$ employees $ata20\%of$ selling price discount. Employee sales are recorded $in$ a separate

account $at$ the net selling price. The balance $in$ this account $at$ the end $of2024is$ $$350,000.$

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

Required:

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