When recording the use of direct materials in the production process, materials inventory is credited for which of the following?
A) Standard quantity for actual production times actual cost per pound
B) Actual quantity times standard cost per pound
C) Actual quantity times actual cost per pound
D) Standard quantity for actual production times standard cost per pound

Question

Quizplus · Accepted Answer

When recording the use of direct materials, the materials inventory is credited based on the actual quantity of materials used times the standard cost per pound. This approach aligns with standard costing practices, where actual usage is measured against predetermined standards to assess efficiency and cost control.

When Recording the Use of Direct Materials in the Production