A quantity of 1,200 gallons of Material X is purchased at a price of $4.50 per gallon. The standard price is $4.00 per gallon. The journal entry for this purchase will include a: a. debit to Materials for $5,400 b. debit to Direct Materials Price Variance for $600 c. credit to Direct Materials Price Variance for $600 d. debit to Work in Process for $4,800

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 10PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...
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A quantity of 1,200 gallons of Material X is purchased at a
price of $4.50 per gallon. The standard price is $4.00 per
gallon. The journal entry for this purchase will include a:
a. debit to Materials for $5,400
b. debit to Direct Materials Price Variance for $600
c. credit to Direct Materials Price Variance for $600
d. debit to Work in Process for $4,800
Transcribed Image Text:A quantity of 1,200 gallons of Material X is purchased at a price of $4.50 per gallon. The standard price is $4.00 per gallon. The journal entry for this purchase will include a: a. debit to Materials for $5,400 b. debit to Direct Materials Price Variance for $600 c. credit to Direct Materials Price Variance for $600 d. debit to Work in Process for $4,800
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ISBN:
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