For standard costing journal entries,
A) standard cost is used to record the method of payment and the actual amount is used to record the DM inventory, WIP Inventory, and FG Inventory, with the difference recognized in the variance accounts.
B) standard cost is recorded in both DM Inventory, WIP Inventory, FG Inventory, and the Cash or Accounts Receivable depending on the method of payment
C) standard cost is recorded in both DM Inventory, WIP Inventory, FG Inventory, and the Cash or Accounts Receivable depending on the method of payment.
D) standard cost is used to record the DM inventory, WIP Inventory, and FG Inventory, actual cost is used to record the method of payment, Cash or Accounts Receivable, and the difference is recognized in the variance accounts.

Question

For standard costing journal entries,
A) standard cost is used to record the method of payment and the actual amount is used to record the DM inventory, WIP Inventory, and FG Inventory, with the difference recognized in the variance accounts.
B) standard cost is recorded in both DM Inventory, WIP Inventory, FG Inventory, and the Cash or Accounts Receivable depending on the method of payment 
C) standard cost is recorded in both DM Inventory, WIP Inventory, FG Inventory, and the Cash or Accounts Receivable depending on the method of payment.
D) standard cost is used to record the DM inventory, WIP Inventory, and FG Inventory, actual cost is used to record the method of payment, Cash or Accounts Receivable, and the difference is recognized in the variance accounts.

Quizplus · Accepted Answer

For standard costing journal entries, standard cost is used to record the DM inventory, WIP Inventory, and FG Inventory, actual cost is used to record the method of payment, Cash or Accounts Receivable, and the difference is recognized in the variance accounts.

For Standard Costing Journal Entries