TJones Manufacturing Company has the following account balances at year end:
$\begin{array}{lr}
\text { Office supplies } & \$ 4,000 \
\text { Raw materials } & 27,000 \
\text { Work-in-process } & 59,000 \
\text { Finished goods } & 72,000 \
\text { Prepaid insurance } & 6,000
\end{array}$
What amount should TJones report as inventories in its balance sheet?
A)$72,000.
B)$76,000.
C)$158,000.
D)$162,000.

Question

TJones Manufacturing Company has the following account balances at year end: 
$\begin{array}{lr}
\text { Office supplies } & \$ 4,000 \
\text { Raw materials } & 27,000 \
\text { Work-in-process } & 59,000 \
\text { Finished goods } & 72,000 \
\text { Prepaid insurance } & 6,000
\end{array}$ 
What amount should TJones report as inventories in its balance sheet?
A)$72,000.
B)$76,000.
C)$158,000.
D)$162,000.

Quizplus · Accepted Answer

Inventories include raw materials, work-in-process, and finished goods. So, the total amount of inventories is $27,000 + $59,000 + $72,000 = $158,000.

TJones Manufacturing Company Has the Following Account Balances at Year