Question

John works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500. What is the total amount that will be reported for inventories?

Answer 1

$54,560

Step-by-step explanation:

Data provided:

On the balance sheet:

Raw materials amounted = $45,600

Finished goods = $8,960

cash equivalents = $10,500

Now,

The total amount of inventory will include only the raw material and the finished goods

The cash is not included in the inventory

Therefore,

The total amount that will be reported in the inventory will be

= Amount of raw material + Amount of finished goods

= $45,600 + $8,960

= $54,560