Bridges Corporation The following information has been taken from the cost records of Bridges Corporation for the past year: Raw material used in production $336 Total manufacturing costs charged to production during 711 the year (includes direct material, direct labor, and overhead equal to 50% of direct labor cost) Cost of goods available for sale 851 Selling and Administrative expenses 35
Inventories Begining Ending

Raw material $80 $90

Work in process 85 25
Finished goods 80 105
Refer to Bridges Corporation.The cost of raw material purchased during the year was

Question

Bridges Corporation
The following information has been taken from the cost records of Bridges Corporation for the past year:
Raw material used in production                                                $336
Total manufacturing costs charged to production during            711
the year (includes direct material, direct labor, and
overhead equal to 50% of direct labor cost)
Cost of goods available for sale                                                  851
Selling and Administrative expenses                                           35

Inventories	Begining	Ending
Raw material	$80	$90
Work in process	85	25
Finished goods	80	105

Refer to Bridges Corporation.The cost of raw material purchased during the year was

Quizplus · Accepted Answer

The cost of raw material purchased is calculated by adding the beginning inventory of raw materials to the raw material purchases during the year and then subtracting the ending inventory of raw materials. Using the given data: Beginning inventory of raw materials = $80, Raw material used in production = $336, Ending inventory of raw materials = $90. The formula to calculate purchases is: Purchases = Raw material used + Ending inventory - Beginning inventory. Therefore, Purchases = $336 + $90 - $80 = $346.

Bridges Corporation The Following Information Has Been Taken from the Cost Records