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:

Annual Return

The percentage of increase or decrease in an investment's value over a one-year period.

Present Value Factors

Present value factors are numerical values used to calculate the present value of a future amount of money or stream of cash flows given a specific interest rate.

Depreciation

The deliberate allocation of a physical asset's expenditure throughout its usable life.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.