Morgan Manufacturing Company has the following account balances at year end:

Office supplies $ 38,000

Raw materials 84,000

Work-in-process 67,000

Finished goods 74,000

Prepaid insurance 6,000

1. What amount should Morgan report as inventories in its balance sheet?

The amount Morgan should report as inventories in its balance sheet is $225,000

Explanation:

Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale and generally categorized as Raw materials, Work-in-process, Finished goods, Manufacturing and packaging supplies in the Manufacturing Company.

In Morgan Manufacturing Company,

Inventories = Raw materials + Work-in-process + Finished goods = $84,000 + $67,000 + $74,000 = $225,000