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,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

The supplies expense for the current year can be calculated as follows:

Cost of supplies purchased = $500 
Less: Supplies on hand at the beginning of the year = $300 
Supplies used during the year = $200 ($500 - $300) 
Add: Supplies on hand at the end of the year = $20

Total supplies expense for the current year = $220 ($200 + $20)

Therefore, the correct answer is B) $780, which is the total supplies expense for the year.

CBA CorpHas Grown Significantly Over the Past Year