Question

Jamison Manufacturing Company has the following account balances at year end:

Office supplies $ 6,000
Raw materials 21,000
Work-in-process 44,000
Finished goods 52,000
Prepaid insurance 8,000
What amount should Jamison report as inventories in its balance sheet?
a.$96,000.
b.$52,000.
c.$117,000.
d.$123,000.

Answer 1

Jamison Manufacturing Company should report a total of $117,000 as inventories on its balance sheet, which is the sum of its raw materials, work-in-process, and finished goods.

Step-by-step explanation:

The question asks which amount Jamison Manufacturing Company should report as inventories on its balance sheet. Inventories typically include the raw materials, work-in-process (WIP), and finished goods that are held by a company in anticipation of selling them to customers. Therefore, to find the total inventory, we sum these three account balances: Raw Materials ($21,000) + Work-in-Process ($44,000) + Finished Goods ($52,000), which equals $117,000. Thus, the correct answer to the question is 'c.$117,000.'