Question

Cullumber Company opened an incorporated dental practice on January 1, 2017. During the first month of operations, the following transactions occurred:

Performed services for patients who had dental plan insurance. At January 31, 8920 of such services were completed but not yet billed to the insurance companies.
Utility expenses incurred but not paid prior to January 31 totaled $610.
Purchased dental equipment on January 1 for $85,850, paying $28,150 in cash and signing a $57,700, 3-year note payable (interest is paid each December 1). The equipment depreciates $550 per month, and interest is $690 per month.
Purchased a 1-year malpractice insurance policy on January 1 for $24,000.
Purchased $2,340 of dental supplies (recorded as an increase to Supplies). On January 31, it was determined that $670 of supplies were on hand.

What is the total cost of supplies for the month?

a) $1,670
b) $2,340
c) $2,670

Answer 1

The total cost of dental supplies used by Cullumber Company for the month is $1,670, calculated by subtracting the remaining inventory from the initial purchase of supplies.

Step-by-step explanation:

The student is asking about calculating the total cost of dental supplies for Cullumber Company for the month of January. To find the total cost of supplies, we need to consider both the purchase of supplies and the remaining inventory at the end of the month. The company initially purchased $2,340 of dental supplies and at the end of January, they determined that $670 of supplies were still on hand. Therefore, the cost of supplies used during the month is $2,340 (purchased amount) minus $670 (ending inventory), which equals $1,670.