If a Company Issues Raw Materials to Production at a Cost

question 55

Multiple Choice

If a company issues raw materials to production at a cost of $18900 when the standard cost is $18300 it will

• A) debit Materials Price Variance for $600.
• B) credit Materials Price Variance for $600.
• C) debit Materials Quantity Variance for $600.
• D) credit Material Quantity Variance for $600.

---

Definitions:

International Trade

The exchange of goods, services, and capital between countries or territories, influencing global economic activity.

Imported Steel

Steel that is produced in one country and then sold and transported for use in another country, affecting domestic markets and production.

Tariff

A levy placed by a government on goods entering or leaving the country to control trade and safeguard local industries.