Under a Standard Costing System, While Recording the Use of Direct

question 158

Multiple Choice

Under a standard costing system, while recording the use of direct materials in the production process, Work-in-Process Inventory is debited with:

• A)standard quantity for actual production times standard cost per unit of raw material.
• B)standard quantity for actual production times actual cost per unit of raw material.
• C)actual quantity times standard cost per unit of raw material.
• D)actual quantity times actual cost per unit of raw material.

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Definitions:

Strictly Liable

Being legally responsible for damages or loss, irrespective of fault or intent.

Bailment

The transfer of possession of property from one person to another under agreement that the property will be returned or otherwise disposed of according to the terms of the agreement.

Fixture

An item of property that is attached to a building or land in such a way that it is considered legally part of the property.

Farmer

An individual or entity engaged in the practice of cultivating land, raising crops, and feeding, breeding, and raising animals or produce as part of agriculture.