Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The credits to the Raw Materials account for August would total:
A)$40,050
B)$14,840
C)$39,750
D)$15,900

Question

Florea Corporation has provided the following data concerning its most important raw material,compound K09B:  The raw material was purchased on account. The credits to the Raw Materials account for August would total:
A)$40,050 
B)$14,840 
C)$39,750 
D)$15,900

Quizplus · Accepted Answer

The Raw Materials account would be credited for the standard cost of the raw materials used in production which is 560 liters × $26.50 per liter = $14,840

Florea Corporation Has Provided the Following Data Concerning Its Most