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

A) ($1,158,810)
B) $1,158,810
C) ($1,159,760)
D) $1,159,760

Question

When recording the raw materials used in production in transaction (b) above, the Work in Process inventory account will increase (decrease) by:A) ($1,158,810)B) $1,158,810C) ($1,159,760)D) $1,159,760

The Average Teenager Life · Accepted Answer

Final Answer : B, Explanation :  The raw materials used in production have a total cost of $1,158,810, which means that Work in Process inventory account will increase by the same amount. Therefore, the correct answer is option B. Work in Process increases by the standard cost of the standard quantity of raw materials allowed for the actual output, which is SQ × SP = (32,100 units × 3.8 pounds per unit)× $9.50 per pound = 121,980 pounds × $9.50 per pound = $1,158,810.

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

A) ($1,158,810)
B) $1,158,810
C) ($1,159,760)
D) $1,159,760

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Learning Objectives

Learning Objectives

Related questions

When recording the raw materials used in production in transaction (b) above, the Work in Process inventory account will increase (decrease) by:A) ($1,158,810) B) $1,158,810C) ($1,159,760) D) $1,159,760

Definitions

Learning Objectives

Learning Objectives

Related questions

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

A) ($1,158,810)
B) $1,158,810
C) ($1,159,760)
D) $1,159,760