When recording the raw materials purchases in transaction (a) above, the Raw Materials inventory account will increase (decrease) by:

A) $1,279,650
B) ($1,279,650)
C) ($1,225,770)
D) $1,225,770

Question

When recording the raw materials purchases in transaction (a) above, the Raw Materials inventory account will increase (decrease) by:A) $1,279,650B) ($1,279,650)C) ($1,225,770)D) $1,225,770

Alazandra Zuniga · Accepted Answer

Final Answer : A, Explanation :  Raw Materials increases by the standard cost of the raw materials purchased, which is AQ × SP = 134,700 pounds × $9.50 per pound = $1,279,650

When recording the raw materials purchases in transaction (a) above, the Raw Materials inventory account will increase (decrease) by:

A) $1,279,650
B) ($1,279,650)
C) ($1,225,770)
D) $1,225,770

Definitions

Learning Objectives

Learning Objectives

Related questions

When recording the raw materials purchases in transaction (a) above, the Raw Materials inventory account will increase (decrease) by:A) $1,279,650B) ($1,279,650) C) ($1,225,770) D) $1,225,770

Definitions

Learning Objectives

Learning Objectives

Related questions

When recording the raw materials purchases in transaction (a) above, the Raw Materials inventory account will increase (decrease) by:

A) $1,279,650
B) ($1,279,650)
C) ($1,225,770)
D) $1,225,770