TP guud 29. PR.03-04 Problem 3-4 Inventories (LO 3.2) Kevin owns a retail store, and during the current year he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use. Assume that he uses the cost method to value the inventory and there was no change in determining quantities, costs, or valuations between opening and closing inventory. Use Part III of Schedule C below to calculate Kevin's cost of goods sold for the year. Enter amounts as positive numbers. Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation . . ... . . . . .... . . . . ... 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . .35 0 36)780 37 36 Purchases less cost of items withdrawn for personal use. . . 37 Cost of labor. Do not include any amounts paid to yourself. . . . . . 38 Materials and supplies.... 38 39 Other costs. . . . . 39 40 40 Add lines 35 through 39. . . . 4177 20 41 Inventory at end of year . . . 42 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4. . . . 17/27 https://v2.cengagenow.com/ilm/takeAssignment/printUntakenAssignment.do?assignmentld=1559623
TP guud 29. PR.03-04 Problem 3-4 Inventories (LO 3.2) Kevin owns a retail store, and during the current year he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use. Assume that he uses the cost method to value the inventory and there was no change in determining quantities, costs, or valuations between opening and closing inventory. Use Part III of Schedule C below to calculate Kevin's cost of goods sold for the year. Enter amounts as positive numbers. Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation . . ... . . . . .... . . . . ... 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . .35 0 36)780 37 36 Purchases less cost of items withdrawn for personal use. . . 37 Cost of labor. Do not include any amounts paid to yourself. . . . . . 38 Materials and supplies.... 38 39 Other costs. . . . . 39 40 40 Add lines 35 through 39. . . . 4177 20 41 Inventory at end of year . . . 42 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4. . . . 17/27 https://v2.cengagenow.com/ilm/takeAssignment/printUntakenAssignment.do?assignmentld=1559623
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 5P: Business with gross receipts of $25 million or less may treat inventory as nonincidental materials...
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Transcribed Image Text:TP
guud
29. PR.03-04
Problem 3-4
Inventories (LO 3.2)
Kevin owns a retail store, and during the current year he purchased $610,000 worth of inventory. Kevin's beginning
inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for
his personal use. Assume that he uses the cost method to value the inventory and there was no change in determining
quantities, costs, or valuations between opening and closing inventory.
Use Part III of Schedule C below to calculate Kevin's cost of goods sold for the year.
Enter amounts as positive numbers.
Cost of Goods Sold (see instructions)
33 Method(s) used to
value closing inventory:
34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If "Yes," attach explanation . .
... . . . .
.... . . . .
...
35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . .35 0
36)780
37
36 Purchases less cost of items withdrawn for personal use. . .
37 Cost of labor. Do not include any amounts paid to yourself. . . . . .
38 Materials and supplies....
38
39 Other costs. . . . .
39
40
40 Add lines 35 through 39. . . .
4177 20
41 Inventory at end of year . . .
42
42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4. . . .
17/27
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