The General Fund reported a beginning balance of inventory of materials and supplies of $122,000. The ending balance was $150,000. Supplies received during the year (purchases) totaled $600,000. The county uses the purchases method. The General Fund should report expenditures for materials and supplies for the year of

Question

Quizplus · Accepted Answer

Under the purchases method, expenditures for materials and supplies are equal to the total amount of supplies purchased during the year, regardless of changes in inventory levels. Therefore, the correct answer is $600,000, as this is the total amount of supplies received (purchased) during the year.

The General Fund Reported a Beginning Balance of Inventory of Materials