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

A) ($86,950)
B) $101,750
C) $86,950
D) ($101,750)

Question

When recording the raw materials used in production in transaction (b) above, the Raw Materials inventory account will increase (decrease) by:A) ($86,950)B) $101,750C) $86,950D) ($101,750)

Eddie Teasdale · Accepted Answer

Final Answer : D, Explanation :  Raw Materials decreases by the standard cost of the raw materials used in production, which is AQ × SP = 18,500 pounds × $5.50 per pound = $101,750.

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

A) ($86,950)
B) $101,750
C) $86,950
D) ($101,750)

Definitions

Learning Objectives

Learning Objectives

Related questions

When recording the raw materials used in production in transaction (b) above, the Raw Materials inventory account will increase (decrease) by:A) ($86,950) B) $101,750C) $86,950D) ($101,750)

Definitions

Learning Objectives

Learning Objectives

Related questions

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

A) ($86,950)
B) $101,750
C) $86,950
D) ($101,750)