Accounting TRex Inc. uses standard costing. The Materials inventory account has a balance of 1,000 pounds at a standard cost of $5 per pound. Which T-account entry should a company make when 720 pounds are taken from the Materials storeroom and put into production? The standard quantity is 700 pounds. Group of answer choices Work in process 3,500 Materials Inventory 100 Quantity variance 3,600 Work in process 3,600 Materials Inventory 3,500 Quantity variance 100 Work in process 3,500 Materials Inventory 3,600 Quantity variance 100 Work in process 3,600 Materials Inventory 3,600 Quantity variance 0
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Accounting
TRex Inc. uses
Group of answer choices
| Work in process | |
|---|---|
| 3,500 |
| Materials Inventory | |
|---|---|
| 100 |
| Quantity variance | |
|---|---|
| 3,600 |
| Work in process | |
|---|---|
| 3,600 |
| Materials Inventory | |
|---|---|
| 3,500 |
| Quantity variance | |
|---|---|
| 100 |
| Work in process | |
|---|---|
| 3,500 |
| Materials Inventory | |
|---|---|
| 3,600 |
| Quantity variance | |
|---|---|
| 100 |
| Work in process | |
|---|---|
| 3,600 |
| Materials Inventory | |
|---|---|
| 3,600 |
| Quantity variance | |
|---|---|
| 0 |
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