Atoka Manufacturing Uses a Standard Cost System Actual Purchases of Direct Materials for the Current Month Are

question 118

Multiple Choice

Atoka Manufacturing uses a standard cost system.Standards for direct materials are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials (pounds per unit of output) } & 2 \\\hline \text { Cost per pound of direct materials } & \$ 6 \\\hline\end{array}$$ Actual purchases of direct materials for the current month are 10,000 pounds for $50,400.Planned and actual production for the month is 3000 units.Atoka has issued 10,000 pounds of direct materials to production.The journal entry to record this transaction is ________.

• A)a debit to Work-in-Process Inventory for $30,240,a credit to Raw Materials Inventory for $36,000,and a debit to Direct Materials Efficiency Variance for $5760
• B)a debit to Work-in-Process Inventory for $30,240,a credit to Raw Materials Inventory for $60,000,and a debit to Direct Materials Efficiency Variance for $29,760
• C)a debit to Work-in-Process Inventory for $36,000,a credit to Raw Materials Inventory for $60,000,and a debit to Direct Materials Efficiency Variance for $24,000
• D)a debit to Work-in-Process Inventory for $60,000,a credit to Raw Materials Inventory for $50,400,and a credit to Direct Materials Efficiency Variance for $9600

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Definitions:

Apoptosis

A process of programmed cell death that occurs in multicellular organisms.

Proto-oncogene

A normal gene that can become an oncogene due to mutations or increased expression, leading to cancer development.

Growth Factor

A hormone or chemical, secreted by one cell, that may stimulate or inhibit growth of another cell or cells.

Diploid State

The diploid state refers to a cell condition in which two sets of chromosomes are present, one from each parent, characteristic of most adult organisms.