Eaton Corporation purchased supplies at a cost of $15,000 during 2014.At January 1,2014,supplies on hand were $2,000.At December 31,2014,supplies on hand are $2,500.Calculate supplies expense for 2014.

Question

Quizplus · Accepted Answer

The formula to calculate supplies expense is:
Supplies Expense = Supplies Purchased - Supplies on Hand at the end of the year + Supplies on Hand at the beginning of the year
Substituting the given values:
Supplies Expense = $15,000 - $2,500 + $2,000 = $14,500
Therefore, the correct answer is B) $14,500.

Eaton Corporation Purchased Supplies at a Cost of $15,000 During