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.

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