Question

During January, its first month of operations, Bridgeport Company accumulated the following manufacturing costs: raw materials purchased $5,400 on account, factory labor $7,300, and utilities payable $2,600. In January, requisitions of raw materials for production are as follows: Job 1 $910, Job 2 $1,400, Job 3 $810, and general factory use $610. Calculate the total raw materials cost incurred during January.

a. $1,400
b. $2,720
c. $3,910
d. $4,820

Answer 1

c.$3,910 because The total raw materials cost incurred is determined by summing specific job requisitions and general factory use, reflecting the actual direct consumption in production processes.

Step-by-step explanation:

The total raw materials cost incurred during January is calculated by summing up the requisitions for specific jobs and general factory use. The requisitions for Job 1, Job 2, and Job 3 are $910, $1,400, and $810, respectively. Additionally, there is a general factory use requisition of $610. Therefore, the total raw materials cost is $910 + $1,400 + $810 + $610 = $3,910.

In detail, raw materials purchased on account during the month amount to $5,400. However, to determine the raw materials cost incurred, we need to consider the specific usage for production. Job 1, Job 2, and Job 3 requisitions represent the direct use of raw materials in production processes, totaling $910 + $1,400 + $810.

The general factory use requisition of $610 includes materials used for overall factory activities. By adding these values, we arrive at the total raw materials cost incurred during January, which is $3,910. This calculation reflects the actual direct consumption of raw materials in the manufacturing process, providing a more accurate representation of the costs directly associated with production. Thus the correct option is c.