Asked by Quinn Duncan on Jul 05, 2024
Verified
When recording the direct labor costs, the Cash account will increase (decrease) by:
A) ($286,740)
B) ($292,855)
C) $286,740
D) $292,855
Cash Account
A financial account that tracks cash transactions, including both receipts and disbursements.
Direct Labor Costs
Wages and other forms of compensation paid to employees who are directly involved in the production of goods.
- Understand how transactions influence the Cash account in relation to material, labor, and overhead expenses.
Verified Answer
RJ
Rachel JonesJul 05, 2024
Final Answer :
B
Explanation :
Cash decreases by the actual amount paid to direct laborers, which is AH × AR = 15,830 hours × $18.50 per hour = $292,855.
Learning Objectives
- Understand how transactions influence the Cash account in relation to material, labor, and overhead expenses.
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