Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2021 operations is as follows: a. January 1, 2021, beginning inventory had a cost of $130,000 and a retail value of $180,000. b. Purchases during 2021 cost $2,027,000 with an original retail value of $3,080,000. c. Freight costs were $13,000 for incoming merchandise. d. Net additional markups were $240,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $18,000 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 2021 is $280,000. g. Sales to customers totaled $2,600,000 for the year.
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2021 operations is as follows: a. January 1, 2021, beginning inventory had a cost of $130,000 and a retail value of $180,000. b. Purchases during 2021 cost $2,027,000 with an original retail value of $3,080,000. c. Freight costs were $13,000 for incoming merchandise. d. Net additional markups were $240,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $18,000 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 2021 is $280,000. g. Sales to customers totaled $2,600,000 for the year.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...
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