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17 July, 23:21

The following information relates to the manufacturing operations of the JNR Printing Company for the year:

Beginning Ending

Raw materials inventory $ 57,000 $ 60,000

Finished goods 68,000 60,000

The raw materials used in manufacturing during the year totaled $118,000.

Raw materials purchased during the year amount to:

A) $126,000. B) $107,000. C) $118,000. D) $115,000. E) $121,000.

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  1. 18 July, 00:14
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    Raw materials purchased during the year amount to E) $121,000.

    Explanation:

    The Raw materials purchased during the year can be found by Opening a Raw Materials T - Account.

    The Balancing figure for this Account Relates to the Purchase of Raw Materials.

    Debits:

    Beginning Raw materials inventory $ 57,000

    Purchase of Raw Materials (Balancing Figure) $121,000

    Totals $178,000

    Credits:

    Ending Raw materials inventory $ 60,000

    Transferred to Manufacturing Account $118,000

    Totals $178,000
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