James Corporation Uses a Standard Cost System and Recognizes the Materials

question 65

Multiple Choice

James Corporation uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased.Information for raw materials for the month of December follows: What is the entry to record material usage?

• A)Work in process 6,270 Materials quantity variance 330 Materials 6,600
• B)Work in process 6,270 Materials quantity variance 330 Materials 5,940
• C)Work in process 6,300 Materials quantity variance 350 Materials 6,650
• D)Work in process 5,940 Materials quantity variance 330 Materials 6,270

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Definitions:

Civil Law Suit

A legal action initiated by one party against another for the enforcement or protection of a private right or for compensation for a wrong in areas governed by civil law.

Counterclaim

A claim made to offset another claim in a legal action, essentially a defendant’s claim against the plaintiff.

Examination for Discovery

A pre-trial process where parties in a lawsuit have the opportunity to question each other or witnesses under oath.

Balance of Probabilities

The standard of proof in most civil cases, requiring that a party's case is more likely true than not.