Use the Following Information for the Next 2 Questions

question 33

Multiple Choice

Use the following information for the next 2 questions.
Thurston Corp. uses a standard job cost system with the following standards: Thurston actually used 2,000 pounds of direct material that cost $10,000 and 500 direct labor hours that cost $7,500.
-The entry to record the usage of direct materials would include a

• A) Debit to Work in process inventory for $9,600
• B) Credit to Raw material inventory for $10,000
• C) Debit to Work in process inventory for $10,500
• D) Credit to Direct materials efficiency variance for $480

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Definitions:

Financial Lease

A type of lease wherein the lessee has possession and control of an asset during its significant life but does not own the asset, effectively treating it as a loan with asset as collateral.

CRA

In the context of Canadian taxation, CRA stands for Canada Revenue Agency, the federal agency responsible for tax collection and enforcement.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset.