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

question 31

Multiple Choice

When using a standard costing system,which of the following should be recorded when direct materials are transferred to the production floor?

• A)Debit raw materials inventory for the actual amount at the standard price and credit work in process for the actual amount at the standard price.
• B)Debit raw materials inventory for the standard amount at the standard price and credit work in process for the actual amount at the actual price with a debit or credit to direct material quantity variance.
• C)Credit raw materials inventory for the standard amount at the standard price and debit work in process for the standard amount at the actual price with a debit or credit to direct material quantity variance.
• D)Credit raw materials inventory for the actual amount at the standard price and debit work in process for the standard amount at the standard price with a debit or credit to direct material quantity variance.

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Definitions:

Foramen Ovale

An opening in the septum between the two atria of the heart in a fetus, which normally closes soon after birth.

Fetal Circulation

The circulatory system in a fetus that includes special structures like the umbilical cord, ductus arteriosus, and foramen ovale, facilitating the exchange of oxygen and nutrients between the fetus and mother.

Arterial Duct

A blood vessel in fetuses that connects the pulmonary artery to the descending aorta, allowing blood to bypass the lungs.

Umbilical Cord

Cord connecting the fetus to the placenta, through which blood vessels pass.