Colbeck Corporation uses a standard cost wystem in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The standard cost card for the company's only product is as follows Input Direct materials Direct labor Pixed manufacturing overhead Total standard cout per unit Standard Quantity or Hours 3.4 gallons 0.70 hours 0.70 hours Standard Price or Rate 5 6.00 per gallon $ 19.50 per hour $ 14.00 per hour Standard Cost $ 20.40 13.65 9.80 $43.85 During the year, the company purchased 68,000 gallons of raw material at a price of $5.40 per gation and used 62,660 gallons of the raw material to produce 18,400 units of work in process Assume that all transactions are recorded on a worksheet od shown in the text. On the left-hand side of the equats sign in the worksheet are columns for Cash Raw Materials, Work in process, Finished Goods, and PP&E (net) All of the variance columns are on the right hand side of the equals sign along with the column for Retained Earnings, When recording the raw materials used in production, the Raw Materials inventory account will increase (decrease) by Multiple Choice 350 E Next > Help Save & Exit Submit Multiple Choice O ($338,364) $375,960 $338,364 ($375,960)