CBA Corp.has grown significantly over the past year.One area that has plagued the Controller of CBA is the reconciliation of supplies expense.The end-of-year supplies on hand totaled $20, and purchases totaled $500, and supplies on hand at the beginning of the year amounted to $300.How much will CBA report as supplies expense for the current year?

Question

Quizplus · Accepted Answer

In order to calculate supplies expense, we need to use the following formula: 
Supplies Expense = Beginning Inventory + Purchases - Ending Inventory 
Plugging in the numbers we have: 
Supplies Expense = $300 + $500 - $20 
Supplies Expense = $780 
Therefore, the correct answer is choice B, $780.

CBA CorpHas Grown Significantly Over the Past Year