Question

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.

Answer 1

Answer:

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