Can someone show me how to do this i am having issues and

Assignment Help Accounting Basics

Reference no: EM13579605

Can someone show me how to do this. I am having issues and being able to see the working helps me understand it better.Problem 9-5 Retail inventory method; conventional and LIFO [LO9-3, 9-4]Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2013 operations is as follows:

a. January 1, 2013, beginning inventory had a cost of $100,000 and a retail value of $150,000.
b. Purchases during 2013 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.

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 2013 is $250,000.
g. Sales to customers totaled $1,750,000 for the year.

Required:

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

Ending Inventory at Retail
Ending Inventory at Cost
Estimated cost of goods sold

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

Reference no: EM13579605

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