Question

The following information relates to the manufacturing operations of the JNR Printing Company for the year: Beginning Ending Raw materials inventory $ 53,000 $ 56,000 Finished goods 64,000 56,000 The raw materials used in manufacturing during the year totaled $114,000. Raw materials purchased during the year amount to:

Answer 1

Answer: $117,000

Explanation:

So we are to calculate the Raw Materials purchased during the year.

Logically speaking the following should hold,

Raw materials purchased during the year + beginning raw materials = ending Raw materials + Raw materials used

Agreeing on that and rearranging the formula we will have,

Raw Material purchased during the year = Raw Material used during the year + Ending Raw Material Inventory - Opening Raw Material Inventory

Slotting in the figures we will then have,

Raw Material purchased during the year = 114,000 + 56,000 - 53,000

= $117,000

Raw materials purchased during the year amount to $117,000.