At lace Manufacturers uses standard costing system. Standards for direct materials are as follows:

Raw material pounds per unit of output…………….2

Cost per pound of raw material……………………..$5

Actual purchases of materials for the current month are 10,000 pounds for $48,000. Planned and actual production for the month is 3,000 units. At lace has issued 10,000 pounds of raw materials to production. The journal entry to record this transaction would be to:

A) a debit to Work-in-Process Inventory for $28,800, a credit to Raw Materials Inventory for $30,000, a debit to Direct Materials Efficiency Variance for $1,200.

B) a debit to Work-in-Process Inventory for $28,800, a credit to Raw Materials Inventory for $50,000, a debit to Direct Materials Efficiency Variance for $28,750.

C) a debit to Work-in-Process Inventory for $30,000, a credit to Raw Materials Inventory for $50,000, a debit to Direct Materials Efficiency Variance for $20,000.

D) a debit to Work-in-Process Inventory for $50,000, a credit to Raw Materials Inventory for $48,000, a credit to Direct Materials Efficiency Variance for $50,000.