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A government with a beginning inventory of supplies of $100 in its General Fund and had the following transactions during the year (all amounts are
A government with a beginning inventory of supplies of $100 in its General Fund and had the following transactions during the year (all amounts are in thousands).
Transactions:
- Ordered supplies with an estimated cost of $3,150.
- Received supplies with an actual invoice cost of $2,920. No payment was made upon receipt; $2,950 was the encumbered amount.
- Paid $2,300 on account for supplies received in #2.
- During the year, the inventory warehouse issued $2,900 in supplies to general government departments.
- The ending physical inventory of General Fund supplies found $150 on hand at year end.
Requirements:
1. | Purchases method of accounting for inventory
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