dont give answer in image format Required information[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 2024operations is as follows:a. January 1, 2024, beginning inventory had a cost of $312,000 and a retail value of $330,000.b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000.c. Freight costs were $28,000 for incoming merchandise.d. Net additional markups were $250,000 and net markdowns were $320,000.e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 of retail value.f Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separateaccount at the net selling price. The balance in this account at the end of 2024 is $430,000.g. Sales to customers totaled $2,000,000 for the year.Required:1. Estimate ending inventory and cost of goods sold using the conventional retail method.Estimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods soldConventionalRetail Method Required information[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 2024operations is as follows:a. January 1, 2024, beginning inventory had a cost of $312,000 and a retail value of $330,000.b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000.c. Freight costs were $28,000 for incoming merchandise.d. Net additional markups were $250,000 and net markdowns were $320,000.e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 of retail value.f Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separateaccount at the net selling price. The balance in this account at the end of 2024 is $430,000.g. Sales to customers totaled $2,000,000 for the year.Required:1. Estimate ending inventory and cost of goods sold using the conventional retail method.Estimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods soldConventionalRetail Method

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Description: dont give answer in image format Required information[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 2024operations is as

Conventional retail method is one of the method used for estimating inventory. Under this, cost to…

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Required information [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 $312.000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 of retail value. f Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separat account at the net selling price. The balance in this account at the end of 2024 is $430,000 g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method.

Required information [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 $312.000 and a retail value of $330,000. b. Purchases during 2024 cost $1,740,000 with an original retail value of $2,670,000. c. Freight costs were $28,000 for incoming merchandise. d. Net additional markups were $250,000 and net markdowns were $320,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $33,000 of retail value. f Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separat account at the net selling price. The balance in this account at the end of 2024 is $430,000 g. Sales to customers totaled $2,000,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method.

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 15P: (Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and...

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Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olsons records: Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. 2. Prepare the appropriate disclosures for the 2021 annual report if Olson uses current cost internally and LIFO for financial reporting.
Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
LIFO and Inventory Pools On January 1, 2016, Grover Company changed its inventory cost flow method to the LIFO cost method from the FIFO cost method for its raw materials inventory. It made the change for both financial statement and income tax reporting purposes. Grover uses the multiple-pools approach under which it groups substantially identical raw materials into LIFO inventory pools. It uses weighted average costs in valuing annual incremental layers. The composition of the December 31, 2018, inventory for the Class F inventory pool is as follows: Inventory transactions for the Class F inventory pool during 2019 were as follows: On March 2, 2019, 4,800 units were purchased at a unit cost of 13.50 for 64,800. On September 1, 2019, 7,200 units were purchased at a unit cost of 14.00 for 100,800. A total of 15,000 units were used for production during 2019. The following transactions for the Class F inventory pool took place during 2020: On January 11, 2020, 7,500 units were purchased at a unit cost of 14.50 for 108,750. On May 14, 2020, 5,500 units were purchased at a unit cost of 15.50 for 85,250. On December 29, 2020, 7,000 units were purchased at a unit cost of 16.00 for 112,000. A total of 16,000 units were used for production during 2020. Required: 1. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2019. Show supporting computations in good form. 2. Prepare a schedule to compute the cost of Class F raw materials used in production for the year ended December 31, 2019. 3. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2020. Show supporting computations in good form.
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