W 30. 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 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. 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 If different from last year's closing inventory, attach explanation... 36 35 36 Purchases less cost of items withdrawn for personal use. . . 37 37 Cost of labor. Do not include any amounts paid to yourself. . . . . 38 38 Materials and supplies . . . . . 39 39 Other costs. ... 40 40 Add lines 35 through 39. . . .. 41 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 . . . .

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

W
30. 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 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.
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...
36
35
36 Purchases less cost of items withdrawn for personal use. . .
37
37 Cost of labor. Do not include any amounts paid to yourself. . . . .
38
38 Materials and supplies . . . . .
39
39 Other costs. ...
40
40 Add lines 35 through 39. . . ..
41
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 . . . .

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