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The Information Below Has Been Taken from the Cost Records

question 104

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The information below has been taken from the cost records of Tercel Company for the past year:
 Raw materials used in production (all  direct)  $326,000 Total manufacturing costs charged to jobs  during the year (includes raw materials,  direct labour, and manufacturing overhead  applied at the rate of 60% of direct labour  cost)  $686,000 Cost of goods available for sales $826,000 Selling and administrative expenses $25,000\begin{array} {| l | r | } \hline \begin{array} { l } \text { Raw materials used in production (all } \\\text { direct) }\end{array} & \$ 326,000 \\\hline \begin{array} { l } \text { Total manufacturing costs charged to jobs } \\\text { during the year (includes raw materials, } \\\text { direct labour, and manufacturing overhead } \\\text { applied at the rate of } 60 \% \text { of direct labour } \\\text { cost) }\end{array} & \$ 686,000 \\\hline \begin{array} { l } \text { Cost of goods available for sales } \\\end{array} & \$ 826,000 \\\hline \begin{array} { l } \text { Selling and administrative expenses }\end{array} &\$25,000\\\hline\end{array}
 Inventories  Beginning  Ending  Raw materials (all direct)  $75,000$85,000 Work in process 80,00030,000 Finished goods 90,000110,000\begin{array}{|l|r|r|}\hline & \text { Inventories } & \\\hline & \text { Beginning } & \text { Ending } \\\hline \text { Raw materials (all direct) } & \$ 75,000 & \$ 85,000 \\\hline \text { Work in process } & 80,000 & 30,000 \\\hline \text { Finished goods } & 90,000 & 110,000 \\\hline\end{array}

-What was the cost of raw materials purchased during the year?

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