Morgan 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 97,000 Prepaid insurance 6,000 What amount should Morgan report as inventories in its balance sheet

Respuesta :

Answer:

$183,000

Explanation:

Morgan's inventory account should include:

Raw materials for $27,000

Work in process for $59,000

Finished goods for $97,000

total value = $183,000

Prepaid insurance is a current asset account, but it doesn't include any type of goods. Office supplies are generally either expensed directly or reported under a separate account, not under inventory.