Question

Carolina mills purchased $270,000 in supplies this year. the supplies account increased by $10,000 during the year to an ending balance of $66,000. what was supplies expense for carolina mills during the year?

Answer 1

Calculation of supplies expense for Carolina mills during the year:

The Supplies Expense for the year can be calculated using the following formula:

Supplies Expense for the year = Supplies Beginning Balance + Supplies added or purchased during the year – Supplies Ending balance

= 56000 + 270000 -66000

= $260,000

(Note: It is given that the supplies account increased by $10,000 during the year to an ending balance of $66,000 that means the Supplies Beginning Balance was 66000-10000 = $56,000)

Hence, the supplies expense for Carolina mills during the year is $260,000