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A company records its direct materials usage at standard cost but also records direct materials quantity variances in its accounting system. The company recorded standard

A company records its direct materials usage at standard cost but also records direct materials quantity variances in its accounting system. The company recorded standard quantity 37,500 gallons of direct materials costing $140.625 at the standard price. The actual quantity used was 36,000 gallons costing $135,000 at the standard price. Which of the following would be included in the journal entry to record direct materials cost? 

a. $5,625 Credit to Direct Materials Quantity Variance 

b. 55,625 Debit to Direct Materials Quantity Variance 

c. $135,000 Credit to Work in Process Inventory 

d. $140,625 Debit to Raw Materials Inventory A.

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