Question

When recording journal entries for production costs using a standard cost accounting system, the debit to Work in Process Inventory account is for the ______ amount.

Answer 1

In standard cost accounting, the debit to the Work in Process Inventory account for production costs represents the standard cost amount, which is based on predetermined standards for materials, labor, and overhead.

Step-by-step explanation:

When recording journal entries for production costs using a standard cost accounting system, the debit to Work in Process Inventory account is for the standard cost amount. In standard cost accounting, costs are assigned based on predetermined benchmarks or standards, which makes it easier to budget and assess operational efficiency. The standard cost includes estimates of the direct materials, direct labor, and manufacturing overhead costs that are expected to be incurred during the production process.