An inventory count conducted on 31^st December 20X1 indicated that Sports World had $180 of office stationery at that time. Accounting records indicate that the business had $120 of stationery at the beginning of the year and purchased $1,040 of stationery during the year. What amount should be expensed for office stationery in the year ended 31^st December 20X1?

Question

Quizplus · Accepted Answer

The amount that should be expensed for office stationery is calculated using the formula:

Beginning inventory + Purchases - Ending inventory = Cost of goods sold

Thus, the amount that should be expensed for office stationery for the year is:

$120 + $1,040 - $180 = $980

Therefore, the correct answer is D) $980.

An Inventory Count Conducted on 31st December 20X1 Indicated That

An Inventory Count Conducted on 31^st December 20X1 Indicated That