Question

Items in Inventory On December 31, Pitts Manufacturing Company reports the following assets: Cash $50,000 Raw materials $74,000 Work in process 176,000 Marketable securities 25,000 Equipment 950,000 Finished goods 150,000 Building 1,200,000 Goodwill 50,000 What is the total amount of Pitts' inventory at year-end

Answer 1

Answer: $400,000

Explanation:

Inventory for a manufacturing company will include Raw materials, Work in Process goods as well as Finished Goods.

Pitts Manufacturing Company will therefore have a total inventory of;

= Raw Materials + Work in Process + Finished goods

= 74,000 + 176,000 + 150,000

= $400,000