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

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

Question

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

Brianna Kolmer · Accepted Answer

Final Answer : B, Explanation :  Cash decreases by the actual cost of the raw materials purchased, which is AQ × AP = 134,700 pounds × $9.10 per pound = $1,225,770.

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

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

Definitions

Learning Objectives

Learning Objectives

Related questions

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

Definitions

Learning Objectives

Learning Objectives

Related questions

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

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