EX. 5-4 A government would account for inventory the same as would a business, with one additional feature. The Boyd School District began a recent fiscal year with $3,000 of supplies in stock. During its fiscal yea it engaged in the following transactions relating to supplies: It purchased supplies at a cost of $22,000. It paid for $19,000 of the supplies. It used $20,000 of the supplies and therefore had $5,000 in supplies inventory at year-end. Record the transactions assuming that the district uses the consumption method.