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Note] This question and the next (or previous) question are based or same data! Petrillo Company produces engine parts for large motors and uses star costing for its production costing and control. The company provided following information for the month of November:

Note] This question and the next (or previous) question are based or same data! Petrillo Company produces engine parts for large motors and uses star costing for its production costing and control. The company provided following information for the month of November:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[Note] This question and the next (or previous) question are based on the same data! Petrillo Company produces engine parts for large motors and uses standard costing for its production costing and control. The company provided the following information for the month of November: Standards for direct materials per unit 7 lbs. at $6 per Ibs. Parts produced 2,000 units Direct materials purchased 12,000 lbs. at $5.8 per Ibs. Beginning inventory of direct 5,000 lbs. materials 2,000 Ibs. Ending inventory of direct materials Which of the following should appear in journal entries to record the purchase of direct materials on account during the period? O Debit to Raw Materials for 69,600 O Credit to Accounts Payable for 72,000 O Credit to Direct Materials Price Variance for 2,400 O Debit to Work-in-Process for 84,000
Transcribed Image Text:[Note] This question and the next (or previous) question are based on the same data! Petrillo Company produces engine parts for large motors and uses standard costing for its production costing and control. The company provided the following information for the month of November: Standards for direct materials per unit 7 lbs. at $6 per Ibs. Parts produced 2,000 units Direct materials purchased 12,000 lbs. at $5.8 per Ibs. Beginning inventory of direct 5,000 lbs. materials 2,000 Ibs. Ending inventory of direct materials Which of the following should appear in journal entries to record the purchase of direct materials on account during the period? O Debit to Raw Materials for 69,600 O Credit to Accounts Payable for 72,000 O Credit to Direct Materials Price Variance for 2,400 O Debit to Work-in-Process for 84,000
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