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:

Mid-ocean Divergent Boundary

A tectonic plate boundary where two plates are moving apart, creating new oceanic crust, typically at a mid-ocean ridge.

Submarine Lava Flows

Lava flows that occur beneath the ocean's surface, often originating from underwater volcanoes or fissures, contributing to the formation of new seafloor.

Lithosphere

The rigid outer layer of the Earth, encompassing the crust and the uppermost mantle, responsible for tectonic activities.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that stretches across the ocean floors and is characterized by a rift at its summit from which new oceanic crust is formed.