Question

question 5 of 10: in the adjustments columns of a worksheet, which formula best represents the amount to credit supplies expense?
a) units used x unit cost
b) units bought x unit cost
c) ending units x unit cost
d) unit cost

Explanation:

To determine the amount to credit Supplies Expense (or the amount of supplies used), we calculate the cost of supplies used. The formula for supplies used cost is Units Used multiplied by Unit Cost, as this gives the total cost of the supplies that were consumed during the period.

• Option b (Units Bought × Unit Cost) gives the total cost of supplies bought, not used.
• Option c (Ending Units × Unit Cost) gives the cost of ending supplies, not the expense.
• Option d (Unit Cost) is just the cost per unit, not the total expense.

So the correct formula is Units Used × Unit Cost.

Answer:

a) Units Used x Unit Cost