Carolina Company placed $26,500 of raw materials into production.The recognition of this event will:
A) decrease net income.
B) not effect total assets.
C) increase revenue.
D) decrease cash flow from investing activities.

Question

Quizplus · Accepted Answer

The cost of materials placed in production decreases the asset account Raw Materials Inventory and increases the asset account Work in Process Inventory.There is no effect on total assets,total equity,or net income.

Carolina Company Placed $26,500 of Raw Materials into Production