Question

The General Fund reported a beginning balance of inventory of materials and supplies of $122,000. The ending balance was $150,000. Supplies received during the year (purchases) totaled $600,000. The county uses the purchases method. The General Fund should report expenditures for materials and supplies for the year of

Answer 1

Answer:

$572,000

Explanation:

Expenditures for materials and supplies for the year are defined as the sum of the initial inventory of materials and supplies and the supplies purchased during the year, subtracted by the ending balance:

$E_{MS} = 122,000 + 600,000 - 150,000\\E_{MS} = 572,000$

Therefore, the General Fund should report $572,000 as expenditures for materials and supplies for the year.