A county uses the consumption method to account for General Fund materials and supplies. The beginning inventory of materials and supplies was $122,000. The ending inventory was $150,000. The beginning balance of reserve for encumbrances (for supplies ordered but not received at the beginning of the year) was $50,000; the ending balance was $20,000. Supplies purchased during the year totaled $750,000. The county General Fund should report expenditures for materials and supplies for the year of

a.

$722,000

b.

$750,000

c.

$752,000

d.

$780,000

Question

Business

Levi Pittman

30 June, 18:02

A county uses the consumption method to account for General Fund materials and supplies. The beginning inventory of materials and supplies was $122,000. The ending inventory was $150,000. The beginning balance of reserve for encumbrances (for supplies ordered but not received at the beginning of the year) was $50,000; the ending balance was $20,000. Supplies purchased during the year totaled $750,000. The county General Fund should report expenditures for materials and supplies for the year of

a.

$722,000

b.

$750,000

c.

$752,000

d.

$780,000

+5

Answers (1)

Know the Answer?

Soren Smith · Answer 1

The correct answer is A.

Explanation:

Giving the following information:

The beginning inventory of materials and supplies was $122,000. The ending inventory was $150,000. The beginning balance of reserve for encumbrances (for supplies ordered but not received at the beginning of the year) was $50,000; the ending balance was $20,000. Supplies purchased during the year totaled $750,000.

Materials:

Purchases = 750,000

Beginning inventory = 122,000

Ending inventory = 150,000 (-)

Total = 722,000