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 lbs. 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 Work-in-Process for 84,000 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 lbs.
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 Work-in-Process for 84,000
O Debit to Raw Materials for 69,600
Credit to Accounts Payable for 72,000
O Credit to Direct Materials Price Variance for 2,400
Transcribed Image Text: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 lbs. 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 Work-in-Process for 84,000 O Debit to Raw Materials for 69,600 Credit to Accounts Payable for 72,000 O Credit to Direct Materials Price Variance for 2,400
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