# W30. PR.03-04.Algo (Algorithmic)Problem 3-4 (Algorithmic)Inventories (LO 3.2)Kevin owns a retail store, and during the current year he purchased \$719,800 worth of inventory. Kevin's beginninginventory was \$71,980, and his ending inventory is \$86,376. During the year, Kevin withdrew \$14,396 in inventory forhis personal use. Assume that he uses the cost method to value the inventory and there was no change in determiningquantities, 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 all amounts as positive numbers.Cost of Goods Sold (see instructions)33 Method(s) used tovalue 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 If different from last year's closing inventory, attach explanation...363536 Purchases less cost of items withdrawn for personal use. . .3737 Cost of labor. Do not include any amounts paid to yourself. . . . .3838 Materials and supplies . . . . .3939 Other costs. ...4040 Add lines 35 through 39. . . ..4141 Inventory at end of year. . .4242 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . .

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Asked Sep 4, 2019
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Problem 3-4 (Algorithmic)
Inventories (LO 3.2)

Kevin owns a retail store, and during the current year he purchased \$719,800 worth of inventory. Kevin's beginning inventory was \$71,980, and his ending inventory is \$86,376. During the year, Kevin withdrew \$14,396 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 all amounts as positive numbers.

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Step 1

Compute the cost of goods sold:

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