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Step-by-step build — 5 steps. Also available as a print sheet.
Join 1x4 boards with the pocket-hole jig to make the panels: two sides, two dividers, and a top and bottom. As you join them, alternate the grain direction of adjacent boards — check the end grain and set them cup-up, cup-down, cup-up — so the panels resist warping to one side. You can skip this entirely by building the box from 1x12 boards instead.
Nail the box together with glue and 2" nails, leaving 10" between each side and the adjacent divider. Pocket holes aren't needed here — the bottom sits on the floor and the top rests on the sides, so there's minimal load on the joints.
Check the box for square, then attach the back with 1-1/4" nails and glue. Nail into the dividers as well as the sides so the whole box is tied together and can't rack.
Cut the two lip sides from 1x4: mark 10" up one edge and 2" up the other, draw the diagonal between them, clamp the boards down, and cut along the line. This gives the angled profile that holds contents in while keeping them reachable.
Attach the lip sides, then run the straight 1x4 lip across their front with glue, drilling a few pocket holes from underneath to fasten the bottom edge. For smaller items like Legos or Lincoln Logs, make the lip steeper by using a 1x6 instead and tracing its edge onto the lip sides.
Fill nail holes, sand, and paint.