Lawson Manufacturing Company has the following account balances atyear end:Office suppliesRaw materialsWork-in-process$ 4,00025,00061,000Finished goods109,000Prepaid insurance6,000What amount should Lawson report as inventories in its balance sheet?

The balance sheet represents the financial position of the business with assets, liabilities and…

Answered: Lawson Manufacturing Company has the…

Lawson Manufacturing Company has the following account balances at year end: Office supplies Raw materials Work-in-process Finished goods Prepaid insurance $4,000 25,000 61,000 109,000 6,000

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Lawson Manufacturing Company has the following account balances at
year end:
Office supplies
Raw materials
Work-in-process
$ 4,000
25,000
61,000
Finished goods
109,000
Prepaid insurance
6,000
What amount should Lawson report as inventories in its balance sheet?

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