Question
A company purchases $650,000 of materials on credit. The standard cost for the materials is $675,000. Which of the following would be the correct journal
A company purchases $650,000 of materials on credit. The standard cost for the materials is $675,000. Which of the following would be the correct journal entries to record the purchase under a standard costing system?
A.
| Direct Materials Control | $675,000 | |
| Direct Materials Price Variance | $25,000 | |
| Accounts Payable Control | $650,000 |
B.
| Accounts Payable Control | $655,000 | |
| Direct Materials Price Variance | $25,000 | |
| Direct Materials Control | $675,000 |
C.
| WIP Control | $675,000 | |
| Direct Materials Price Variance | $25,000 | |
| Accounts Payable Control | $650,000 |
D.
| Accounts Payable Control | $655,000 | |
| Direct Materials Price Variance | $25,000 | |
| WIP Control | $675,000 |
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Financial Statement Fraud Casebook Baking The Ledgers And Cooking The Books
Authors: Joseph T. Wells
1st Edition
0470934417, 978-0470934418
