Near the end of 2015, Spruce Co. made the following purchases. The months involved in all cases are December 2015 and January 2016.

What amount of the above purchases should be included in Spruce's inventory at December 31, 2015?
A) $1,575
B) $1,890
C) $4,320
D) $4,575

Question

Near the end of 2015, Spruce Co. made the following purchases. The months involved in all cases are December 2015 and January 2016.

What amount of the above purchases should be included in Spruce's inventory at December 31, 2015?
A) $1,575 
B) $1,890 
C) $4,320 
D) $4,575

Quizplus · Accepted Answer

Only the purchases made in December 2015 should be included in Spruce's inventory at December 31, 2015. Therefore, the amount to include is $675 + $1,215 = $1,890. The purchases made in January 2016 are not part of the inventory at the end of December 2015.

Near the End of 2015, Spruce Co