Question

Lawson Manufacturing Company has the following account balances at year end:
Office supplies $ 4,000
Raw materials 27,000
Work-in-process 59,000
Finished goods 109,000
Prepaid insurance 6,000
What amount should Lawson report as inventories in its balance sheet?
A) $109,000.
B) $113,000.
C) $195,000.
D) $199,000.

Answer 1

Answer:

C) $195,000.

Explanation:

Calculation for the amount that Lawson should report as inventories in its balance sheet

Raw materials 27,000

Add Work-in-process 59,000

Add Finished goods 109,000

Inventories $195,000

Therefore the amount that Lawson should report as inventories in its balance sheet will be 195,000