Rutherford County Uses the Consumption Method to Account for General

Multiple Choice

Rutherford County uses the consumption method to account for General Fund materials and supplies. The beginning inventory of materials and supplies was $122,000. The ending inventory was $150,000. The beginning balance of reserve for encumbrances (for supplies ordered but not received at the beginning of the year) was $50,000; the ending balance was $20,000. Supplies purchased during the year totaled $750,000. The county General Fund should report expenditures for materials and supplies for the year of

A) $722,000.
B) $750,000.
C) $752,000.
D) $780,000.