Required information Required:

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

Note: Assume stable prices.

$[$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 $$134,000$ and a retail value of $$160,000.$

b$.$ Purchases during $2024$ cost $$1,375,000$ with an original retail value of $$2,115,000.$

c$.$ Freight costs were $$11,000$ for incoming merchandise.

d$.$ Net additional markups were $$100,000$ and net markdowns were $$115,000.$

e$.$ Based on prior experience, shrinkage due to shoplifting was estimated to be $$16,000$ of retail value.

f$.$ Merchandise is sold to employees at a $25\%$ 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 $$270,000.$

g$.$ Sales to customers totaled $$1,700,000$ for the year.

Required:

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