Question

Under a standard cost system, when recording the use of direct materials in the production process, the debit to Work-in-Process Inventory is ________.

A) standard quantity for actual production times standard cost per unit of direct materials
B) standard quantity for actual production times actual cost per unit of direct materials
C) actual quantity times standard cost per unit of direct materials
D) actual quantity times actual cost per unit of direct materials

Answer 1

Under a standard cost system, the debit to Work-in-Process Inventory is the standard quantity for actual production times the standard cost per unit of direct materials.

Step-by-step explanation:

Under a standard cost system, when recording the use of direct materials in the production process, the debit to Work-in-Process Inventory is option A) standard quantity for actual production times standard cost per unit of direct materials.

In a standard cost system, the standard quantity of direct materials required for actual production is multiplied by the standard cost per unit of direct materials. This gives us the standard cost of the direct materials used in the production process, which is recorded as a debit to the Work-in-Process Inventory account.