The following information relates to the manufacturing operations of the JNR Printing Company for the year: $$\begin{array} { l r r }
& \text { Beginning }&\text { Ending } \
\text { Raw materials inventory } & \$ 57,000 & \$ 60,000 \
\text { Finithed goods } & 68,000 & 60,000
\end{array}$$ The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:
A) $115,000.
B) $121,000.
C) $107,000.
D) $118,000.
E) $126,000.

Question

The following information relates to the manufacturing operations of the JNR Printing Company for the year: $$\begin{array} { l r r } 
& \text { Beginning }&\text { Ending } \ 
\text { Raw materials inventory } & \$ 57,000 & \$ 60,000 \
\text { Finithed goods } & 68,000 & 60,000
\end{array}$$ The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:
A) $115,000.
B) $121,000.
C) $107,000.
D) $118,000.
E) $126,000.

Quizplus · Accepted Answer

The raw materials used in manufacturing during the year were $118,000. The raw materials purchased during the year would have been the starting raw materials inventory plus the purchases during the year minus the ending raw materials inventory. Since no information is given about the starting and ending raw materials inventory, we can only calculate the purchases during the year. Therefore, the purchases during the year must be $118,000 minus any decrease in raw materials inventory. Since it is unlikely that the raw materials inventory has decreased from the beginning of the year to the end, we can assume that the purchases during the year are greater than $118,000. The only answer choice greater than $118,000 is B, $121,000.

The Following Information Relates to the Manufacturing Operations of the JNR