Question
A quantity of 1,200 gallons of Material X is purchased at a price of $4.50 per gallon. The standard price is $4.00 per gallon. The
A quantity of 1,200 gallons of Material X is purchased at a price of $4.50 per gallon. The standard price is $4.00 per gallon. The journal entry for this pur-chase will include a:
a. debit to Materials for $5,400
b. debit to Direct Materials Price Variance for $600
c. credit to Direct Materials Price Variance for $600
d. debit to Work in Process for $4,800
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Managerial Accounting
Authors: Sivaramakrishna, Ramji Balakrishnan
1st Edition
0471467855, 978-0471467854
