Problem $3-4$

Inventories $($LO $3\mathrm{.}2)$

Torrey owns a retail store, and during the current year purchased $$580,000$ worth of inventory. Torrey's beginning inventory was $$60,000,$ and ending inventory is $$80,000.$ During

the year, Torrey withdrew $$1,000$ in inventory for 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 from Appendix F to calculate Torrey's cost of goods sold for the year.

Enter amounts as positive numbers.

Part III

Cost of Goods Sold $($see instructions$)$

$33$ Method$($s$)$ used to

value closing inventory:

If "Yes," attach explanation

$35$ Inventory at beginning of year. If different from last year's closing inventory, attach explanation

$36$ Purchases less cost of items withdrawn for persohal use

$37$ Cost of labor. Do not include any amounts paid to yourself.

$38$ Materials and supplies.

$39$ Other costs.

$40$ Add lines $35$ through $39$

$41$ Inventory at end of year

$42$ Cost of goods sold. Subtract line $41$ from line $40.$ Enter the result here and on line $4$