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:

Unitising Costs

The process of breaking down costs into smaller, individual pieces or units to better analyze and manage them.

Quantitative Information

Data or information that can be measured and expressed numerically, facilitating objective analysis and decision-making.

Joint Product

A product that is produced simultaneously with one or more other products in a single production process, where the costs of production cannot be individually attributed to each product.

Relative Sales Value Method

A method used to allocate joint costs based on the relative sales values of different products produced from the same process.