When Using a Standard Costing System,which of the Following Should

question 16

Multiple Choice

When using a standard costing system,which of the following should be recorded for labor as a product is being made?

• A)Debit wages payable for the actual hours of labor at the standard rate and credit work in process for the actual hours worked at the standard rate
• B)Debit payable wages for the standard hours at the standard rate and credit work in process for the actual hours at the actual rate
• C)Credit wages payable for the standard hours at the standard rate and debit work In process for the standard hours at the actual rate
• D)Credit wages payable for the actual hours at the actual rate and debit work in process for the standard hours at the standard rate

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Definitions:

Independent Auditors

External experts who examine the financial records and statements of an organization to ensure accuracy and compliance with applicable standards.

Securities & Exchange Commission

A U.S. federal agency responsible for enforcing federal securities laws, regulating the securities industry, and overseeing the stock and options exchanges.

Inventories

Items held for sale in the ordinary course of business, or goods to be used in the production of goods to be sold, including raw materials, work-in-progress, and finished goods.