If the Standard Quantity of Materials Is 84,500 Units at $0.15

question 85

Multiple Choice

If the standard quantity of materials is 84,500 units at $0.15 per unit and the actual quantity is 95,000 units at $0.12 per unit,then the journal entry to record the cost of materials used includes:

• A)A debit to Work in Process Inventory of $11,400.
• B)A debit to Work in Process Inventory of $12,675.
• C)A debit to Materials Price variance of $2,850.
• D)A credit to Materials Price variance of $1,575.

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Definitions:

Billing Electronically

The process of sending bills or invoices to customers through electronic means, such as email or online platforms, rather than paper mail.

Total Collection Time

The average duration it takes for a business to collect payments owed by its customers.

Zero-balance Account

A type of bank account that maintains a balance of zero by automatically transferring funds from a master account in an exact amount to cover checks presented.

As-needed Basis

A method or arrangement where resources are utilized or tasks are performed as and when required, rather than on a scheduled or continuous basis.