The Following Information Relates to the Manufacturing Operations of the JNR

question 158

Multiple Choice

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) $107,000.
• B) $115,000.
• C) $118,000.
• D) $121,000.
• E) $126,000.

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Definitions:

Ledger

A comprehensive collection of a company's financial accounts, where transactions are recorded using a double-entry bookkeeping system.

Accrual Basis Accounting

An accounting method where revenues and expenses are recorded when earned or incurred, regardless of when the cash transactions occur.

Statement of Retained Earnings

A financial statement that shows the changes in a company's retained earnings over a specific period.

Net Income

The remaining profit of a company post deduction of all expenses, taxes, and costs from its total revenues.