Asked by
Mazen Alowdi
on Oct 10, 2024
Verified
When the raw materials used in production are recorded in transaction (b) above, which of the following entries will be made?
A) ($900) in the Materials Quantity Variance column
B) ($900) in the Materials Price Variance column
C) $900 in the Materials Price Variance column
D) $900 in the Materials Quantity Variance column
Materials Quantity Variance
The contrast between the quantity of materials actually used and the quantity that was projected, with this difference being multiplied by the standard price per unit.
Materials Price Variance
The variance between the real expense of materials utilized in production and the predetermined standard cost of those materials.
- Identify the bookkeeping records associated with acquiring raw materials.
- Evaluate the implications of noting down raw materials utilization in production on the Raw Materials Inventory account.
Verified Answer
PS
Learning Objectives
- Identify the bookkeeping records associated with acquiring raw materials.
- Evaluate the implications of noting down raw materials utilization in production on the Raw Materials Inventory account.
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