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

A) $1,472,460
B) ($1,366,200)
C) $1,366,200
D) ($1,472,460)

Question

When recording the raw materials purchases in transaction (a) above, the Cash account will increase (decrease) by:A) $1,472,460B) ($1,366,200)C) $1,366,200D) ($1,472,460)

Sefia Dedefo · Accepted Answer

Final Answer : D, Explanation :  Cash decreases by the actual cost of the raw materials purchased, which is AQ × AP = 151,800 kilos × $9.70 per kilo = $1,472,460.

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

A) $1,472,460
B) ($1,366,200)
C) $1,366,200
D) ($1,472,460)

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) $1,472,460B) ($1,366,200) C) $1,366,200D) ($1,472,460)

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) $1,472,460
B) ($1,366,200)
C) $1,366,200
D) ($1,472,460)