The following information relates to the manufacturing operations of the IMH Publishing Corporation 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 IMH Publishing Corporation 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

Since the question states that the total of raw materials used in manufacturing during the year was $118,000, and assuming that all raw materials used were purchased during the year, the amount of raw materials purchased during the year would be $118,000 plus any ending inventory. However, since there is no information provided about ending inventory, the only amount that can be confirmed is $118,000 for raw materials used, which means that the raw materials purchased must have been more than that amount. Therefore, the closest choice would be D, $121,000, which represents an amount greater than the raw materials used.

The Following Information Relates to the Manufacturing Operations of the IMH