INVENTORIES An examination of the audit work papers of Widget Manufacturing Corporation discloses the following information: Financial Statements $ 1,240,000 Tax Beginning inventory $ 1,419,000 Additions to inventory: Direct materials Direct labor Indirect costs 11,422,000 6,214,000 3,963,000 Less: Ending inventory (1,073,000) 922,000) $ 21, 917,000 Equals: cost of Goods Sold $ The tax manager who reviewed the provision for income taxes, also reviewed this information and 1. 2. Concurred that the beginning and ending inventory balances for tax purposes were properly stated using the uniform capitalization rules, and Noted that for tax purposes, additional indirect costs required to be capitalized under the uniform capitalization rules amounted to $302,000. Required: 1. 2. Determine cost of goods sold for tax purposes. Discuss the tax return reporting implications of this information