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

Question

Quizplus · Accepted Answer

The consumption method records expenditures based on the amount of supplies actually used during the year. The formula is: Beginning Inventory + Purchases - Ending Inventory = Expenditures. Thus, $122,000 + $750,000 - $150,000 = $722,000.

A County Uses the Consumption Method to Account for General