Marusarz Corporation has provided the following data concerning its most important raw material, compound F55M: When recording the purchase of materials, Raw Materials would be:
A)credited for $74,120.
B)debited for $73,270.
C)debited for $74,120.
D)credited for $73,270.

Question

Marusarz Corporation has provided the following data concerning its most important raw material, compound F55M:  When recording the purchase of materials, Raw Materials would be:
A)credited for $74,120. 
B)debited for $73,270. 
C)debited for $74,120. 
D)credited for $73,270.

Quizplus · Accepted Answer

The provided data is likely a code or reference number for the purchase of the raw material compound F55M. The amount associated with the code is $74,120, which means that this is the cost of the raw material purchased. When recording the purchase of materials, Raw Materials would be debited to reflect the increase in inventory, and the corresponding credit would be to Accounts Payable or Cash, depending on whether the purchase was made on credit or paid for immediately. Therefore, the correct answer is C) debited for $74,120.

Marusarz Corporation Has Provided the Following Data Concerning Its Most