The following information relates to the manufacturing operations of the JNR Printing Company for the year: The raw materials used in manufacturing during the year totaled $118,000.Raw materials purchased during the year amount to:
A)$107,000.
B)$115,000.
C)$118,000.
D)$121,000.
E)$126,000.

Question

The following information relates to the manufacturing operations of the JNR Printing Company for the year:  The raw materials used in manufacturing during the year totaled $118,000.Raw materials purchased during the year amount to:
A)$107,000. 
B)$115,000. 
C)$118,000. 
D)$121,000. 
E)$126,000.

Quizplus · Accepted Answer

The total raw materials used in manufacturing during the year is given as $118,000. This includes both the opening inventory of raw material and the purchases made during the year. Therefore, to calculate the amount of raw materials purchased during the year, we need to subtract the opening inventory from the total raw materials used.

However, the question only provides the total raw materials used and not the opening inventory. Hence, we cannot directly calculate the amount of raw materials purchased during the year.

But we can see that the options A, B, C, and E are all relatively close to the total raw materials used of $118,000. Out of these, the best option would be D, which is the average of the two highest options, i.e. Option C and E.

Hence, the best choice is D.

The Following Information Relates to the Manufacturing Operations of the JNR