Under a standard costing system, while recording the use of direct materials in the production process, Work-in-Process Inventory is debited with:
A)standard quantity for actual production times standard cost per unit of raw material.
B)standard quantity for actual production times actual cost per unit of raw material.
C)actual quantity times standard cost per unit of raw material.
D)actual quantity times actual cost per unit of raw material.

Question

Quizplus · Accepted Answer

Under the standard costing system, the Work-in-Process Inventory is debited with the standard quantity for actual production times the standard cost per unit of raw material used. This is because standard costing system assumes that the raw material usage will be at the standard quantity and standard cost per unit. Therefore, the debit should be based on these standards rather than actual quantities and costs.

Under a Standard Costing System, While Recording the Use of Direct