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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. $123,000.
b. $52,000.
c. $117,000.
d. $96,000.

User John Hall
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1 Answer

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Final answer:

To determine the inventory value for Jamison Manufacturing Company, the raw materials, work-in-process, and finished goods are added together, yielding a total inventory value of $117,000 that should be reported on the balance sheet. Option c is correct.

Step-by-step explanation:

The question concerns the accounting practice of reporting inventories on a company's balance sheet. To determine the amount Jamison Manufacturing Company should report as inventories, we add together the balances of raw materials, work-in-process, and finished goods, as these are considered inventory accounts. The sum of these accounts is:

Raw materials: $21,000

Work-in-process: $44,000

Finished goods: $52,000

Adding these figures together, the total inventory value is:

$21,000 (Raw materials) + $44,000 (Work-in-process) + $52,000 (Finished goods) = $117,000

Therefore, the amount Jamison should report as inventories on its balance sheet is $117,000.

Inventories represent the goods that a company has on hand and is yet to sell. It includes raw materials, work-in-process, and finished goods. In this case, Jamison Manufacturing Company should report a total of $117,000 as inventories in its balance sheet.

User Bindrid
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