Bedrock Company reported a December 31 ending inventory balance of $413,500. The following additional information is also available: (a) The ending inventory balance of $413,500 included $72,300 of consigned inventory for which Bedrock was the consignor. (b) The ending inventory balance of $413,500 included $22,600 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is: (A) $362,600 (B) $309,000 (C) $390,900 (D) $247,000 (E) $341,900

Question

Fletcher Glover

Business

24 April, 17:35

Bedrock Company reported a December 31 ending inventory balance of $413,500. The following additional information is also available: (a) The ending inventory balance of $413,500 included $72,300 of consigned inventory for which Bedrock was the consignor. (b) The ending inventory balance of $413,500 included $22,600 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is: (A) $362,600 (B) $309,000 (C) $390,900 (D) $247,000 (E) $341,900

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Answers (1)

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Myers · Answer 1

The correct balance for ending inventory on December 31 is $390,900

Explanation:

To calculate the correct balance for ending inventory on december 31 is necessary to rest the ending inventory balance minus the Office supplies

$413.500-$22.600 = $390.900