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

A) ($92,590)
B) $108,350
C) $92,590
D) ($108,350)

Question

When recording the raw materials purchases in transaction (a) above, the Raw Materials inventory account will increase (decrease) by:A) ($92,590)B) $108,350C) $92,590D) ($108,350)

Gabriel Quiroz · Accepted Answer

Final Answer : B, Explanation :  According to the question, the raw materials purchases were made for $108,350. When recording the purchases, the Raw Materials inventory account will increase by the same amount, which is $108,350. Therefore, the correct answer is B - $108,350. Raw Materials increases by the standard cost of the raw materials purchased, which is AQ × SP = 19,700 pounds × $5.50 per pound = $108,350

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

A) ($92,590)
B) $108,350
C) $92,590
D) ($108,350)

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) ($92,590) B) $108,350C) $92,590D) ($108,350)

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) ($92,590)
B) $108,350
C) $92,590
D) ($108,350)