When the Actual Amount of a Raw Material Used in Production

question 7

Multiple Choice

When the actual amount of a raw material used in production is greater than the standard amount allowed for the actual output, the journal entry would include:

• A)Credit to Raw Materials; Credit to Materials Quantity Variance
• B)Credit to Work-In-Process; Credit to Materials Quantity Variance
• C)Credit to Raw Materials; Debit to Materials Quantity Variance
• D)Credit to Work-In-Process; Debit to Materials Quantity Variance

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Definitions:

Future Earnings

Projected profits or income of a business or investment, anticipated in future periods based on past and current trends.

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential.

Non-Monetary Capabilities

Skills, knowledge, relationships, and other intangible assets that do not have a direct monetary value but contribute to an organization's or individual's success.

Timing

The selection of an appropriate or opportune time for doing something, crucial for success in various contexts.