Question

Orlando Company placed $142 of raw materials into production. How would this transaction affect the company's financial statements? = Liabilities + Equity Revenue - Expenses = Net Income Assets Raw Materials Work in Process Inventory Inventory Multiple Choice 0 (142) | + | (142) |-| NA | + | NA 1 NA 1-1 NA || NA o 142 10 (142) 1-1 N : N 1-N - NA O (142) +] 142 1-1 NA 1+1 NA NA 1-1 NA 1-1 NA O P (142) T+ NA T- T NA T+ (142) T NA T-T 142 T-| (142)

Answer 1

Awets Expenses l= | Net Iricare Answer, CC) [Liabilities It Equity | Revenue & Raw engtestage work-in flaces Travesting | Facegbory I (42) 1 142 BL NA NA NA NA NA Raw Materjal Invenbory_Account An_organisation requlves the row Oaterials to produce the inventory in the form of Hnished Gools. The purchase of Inace maleriets will help organligtion to polyce fing shat gools. At the time of purchase, 17 entity clebitis nou malenges igien boky account But for the protection of the finished gools this raw materiali shoull be nocessel at the factory such raw materials are Home 64gsferred to Worke 10-Access for production Heace of the Home of transfer this will be credited Work-19- Docess. Invenbory Account t for the production of finished good; raw material are proluced atthe factory with account under work in process. At Then time of tranited the raw materials to work in process the work in process inventory_qccoynl_ should be febjled. At factory- company incurrs various costs to police finished goods. This costs Yvo debited to the work - 19-process quentowy 7ccount And Ronally your materials are produced at the factory an eandert from work-in-procesito me to finisher goods tqvenlevy learnt the at the time of such transfer this will be weliver .

A company should pass journal entry when It placed raw materials o be production as followed = Particellow Debitcc] el Celjices Work-in- Process Inventory A/c Or XXX 'To Raw Materiale: Inventory Alc 1 (To recoll the materials transferred to production) XXX | This means reduction in one inventory causes incregue to other inventary Therefore, the impact is only to the inventory which is asset for the company. _In_The question, we_haque given comply placed $142 of low mabeulalighe production this will recoplas: _ 142 Work-in-process Inventory Alk a in To Raw Materials Inventory Ale | (Being to record transfer materials to proluction 1. The impact is only to the Asset Section of Balance Sheet. In fingodel Statement only one inventory, zqw mgleolibe reduced and the other inventory of raw materials hun sferred to work -19 - proces's lie Work 19. Thewes I Iquenbory is Iquentory Increpaldo

Anneer _CC) - Equity Revenue Expenses Net Incorre Ajets -Liqbilities Raw materjal Work-in Procesi - Inventory 1+ Inventory I (142) + 142 = NA + NA NA NA NA .