Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) 2 Cost per pound of direct materials $6 The company plans to produce 3,500 units and has purchased on account 12,000 pounds of direct materials at a net cost of $45,000. What is the journal entry to record this transaction? ..... O A. Raw Materials Inventory 18,000 Direct Materials Cost Variance 27,000 Accounts Payable 45,000 O B. Raw Materials Inventory 45,000 Direct Materials Cost Variance 27,000 Accounts Payable 18,000 O C. Raw Materials Inventory 72,000 Direct Materials Cost Variance 27,000 45,000 Accounts Payable O D. Raw Materials Inventory 45,000 Direct Materials Cost Variance Accounts Payable 27,000 72,000
Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) 2 Cost per pound of direct materials $6 The company plans to produce 3,500 units and has purchased on account 12,000 pounds of direct materials at a net cost of $45,000. What is the journal entry to record this transaction? ..... O A. Raw Materials Inventory 18,000 Direct Materials Cost Variance 27,000 Accounts Payable 45,000 O B. Raw Materials Inventory 45,000 Direct Materials Cost Variance 27,000 Accounts Payable 18,000 O C. Raw Materials Inventory 72,000 Direct Materials Cost Variance 27,000 45,000 Accounts Payable O D. Raw Materials Inventory 45,000 Direct Materials Cost Variance Accounts Payable 27,000 72,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows:
Direct materials (pounds per unit of output)
2
Cost per pound of direct materials
$6
The company plans to produce 3,500 units and has purchased on account 12,000 pounds of direct materials at a net cost of $45,000. What is the journal entry to record this transaction?
O A. Raw Materials Inventory
18,000
27,000
Direct Materials Cost Variance
Accounts Payable
45,000
O B. Raw Materials Inventory
45,000
Direct Materials Cost Variance
27,000
Accounts Payable
18,000
O C. Raw Materials Inventory
72,000
Direct Materials Cost Variance
27,000
45,000
Accounts Payable
O D. Raw Materials Inventory
45,000
Direct Materials Cost Variance
27,000
Accounts Payable
72,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F588b1606-a7cb-492f-b2c1-78dc429479a1%2Fea685eae-a111-42c2-9616-f4f0ef6bba9d%2Fvjmnnz4_processed.png&w=3840&q=75)
Transcribed Image Text:Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows:
Direct materials (pounds per unit of output)
2
Cost per pound of direct materials
$6
The company plans to produce 3,500 units and has purchased on account 12,000 pounds of direct materials at a net cost of $45,000. What is the journal entry to record this transaction?
O A. Raw Materials Inventory
18,000
27,000
Direct Materials Cost Variance
Accounts Payable
45,000
O B. Raw Materials Inventory
45,000
Direct Materials Cost Variance
27,000
Accounts Payable
18,000
O C. Raw Materials Inventory
72,000
Direct Materials Cost Variance
27,000
45,000
Accounts Payable
O D. Raw Materials Inventory
45,000
Direct Materials Cost Variance
27,000
Accounts Payable
72,000
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