JSmith Manufacturing Company has the following account balances at year end:
$\begin{array}{lr}
\text { Office supplies } & 4,000 \
\text { Raw materials } & 27,000 \
\text { Work-in-process } & 59,000 \
\text { Finished goods } & 92,000 \
\text { Prepaid insurance } & 6,000
\end{array}$
What amount should JSmith report as inventories in its balance sheet?
A)$92,000.
B)$96,000.
C)$178,000.
D)$182,000.

Question

JSmith Manufacturing Company has the following account balances at year end:
 $\begin{array}{lr}
\text { Office supplies } & 4,000 \
\text { Raw materials } & 27,000 \
\text { Work-in-process } & 59,000 \
\text { Finished goods } & 92,000 \
\text { Prepaid insurance } & 6,000
\end{array}$ 
What amount should JSmith report as inventories in its balance sheet?
A)$92,000.
B)$96,000.
C)$178,000.
D)$182,000.

Quizplus · Accepted Answer

Inventories include raw materials, work-in-process, and finished goods. Therefore, the total inventory is $27,000 + $59,000 + $92,000 = $178,000.

JSmith Manufacturing Company Has the Following Account Balances at Year