When recording the direct labor costs in transaction (c) above, the Cash account will increase (decrease) by:

A) ($201,300)
B) $201,300
C) ($209,745)
D) $209,745

Question

When recording the direct labor costs in transaction (c) above, the Cash account will increase (decrease) by:A) ($201,300)B) $201,300C) ($209,745)D) $209,745

Landry Edwards · Accepted Answer

Final Answer : C, Explanation :  Direct labor costs include wages and payroll taxes, which are expenses for the company. Therefore, when recording the direct labor costs, the Cash account will decrease. The total direct labor cost is $209,745, so the Cash account will decrease by that amount. Cash decreases by the actual amount paid to direct laborers, which is AH × AR = 8,850 hours × $23.70 per hour = $209,745.

When recording the direct labor costs in transaction (c) above, the Cash account will increase (decrease) by:

A) ($201,300)
B) $201,300
C) ($209,745)
D) $209,745

Definitions

Learning Objectives

Learning Objectives

Related questions

When recording the direct labor costs in transaction (c) above, the Cash account will increase (decrease) by:A) ($201,300) B) $201,300C) ($209,745) D) $209,745

Definitions

Learning Objectives

Learning Objectives

Related questions

When recording the direct labor costs in transaction (c) above, the Cash account will increase (decrease) by:

A) ($201,300)
B) $201,300
C) ($209,745)
D) $209,745