The Following Information Is Available for the Year Ended December

question 114

Multiple Choice

The following information is available for the year ended December 31: $\begin{array} { | l | r | } \hline \text { Beginning raw materials inventory } & \$ 21,500 \\\text { Raw materials purchases } & 74,000 \\\hline \text { Ending raw materials inventory } & 23,000 \\\hline \text { Office supplies expense } & 2,400 \\\hline\end{array}$ The amount of raw materials used in production for the year is:

• A) $76,400.
• B) $95,500.
• C) $72,500.
• D) $74,900.
• E) $70,100.

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Definitions:

Operating Results

The financial outcomes of a company's operations, often presented as net income or loss, which represent the profitability from regular business activities.

Income Statement

A financial statement that shows a company's revenues and expenses, leading to its net profit or loss over a specific period.

Net Operating Income

The total profit of a company after operating expenses have been subtracted from total revenue, but before deducting taxes and interest.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific product, department, or segment of a business.