The Following Information Relates to the Manufacturing Operations of the JNR

question 217

Multiple Choice

The following information relates to the manufacturing operations of the JNR Printing Company for the year: 11edcbcd
$\begin{array}{lrr} & \text { Beginning } & \text { Ending } \\\text { Raw materials inventory } & \$ 57,000 & \$ 60,000 \\\text { Finished goods } & 68,000 & 60,000\end{array}$

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:

Law of Supply and Demand

An economic principle stating that the price of a good or service is determined by its availability (supply) and the desire for it (demand), assuming all else being equal.

DRG System

Diagnosis-related group system, a method used by healthcare providers to classify hospitalization costs and determine how much to reimburse for care based on the diagnosis.

Health Care Costs

refer to the expenses associated with the prevention, diagnosis, treatment, and management of illness and the preservation of mental and physical well-being.

Affordable Care Act

A comprehensive health care reform law enacted in 2010 in the United States to increase health insurance quality and affordability.