TJones Manufacturing Company Has the Following Account Balances at Year

question 44

Multiple Choice

TJones Manufacturing Company has the following account balances at year end: $\begin{array}{lr}\text { Office supplies } & \$ 4,000 \\\text { Raw materials } & 27,000 \\\text { Work-in-process } & 59,000 \\\text { Finished goods } & 72,000 \\\text { Prepaid insurance } & 6,000\end{array}$ What amount should TJones report as inventories in its balance sheet?

• A)$72,000.
• B)$76,000.
• C)$158,000.
• D)$162,000.

---

Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the net identifiable assets.

Voting Stock

Shares that give the stockholder the right to vote on matters of corporate policy making and the election of the board of directors.

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.