Question
Brooks Company uses a standard costing system. The following information pertains to direct materials for the month of June: Standard price per lb. $15.00 Actual
Brooks Company uses a standard costing system. The following information pertains to direct materials for the month of June:
Standard price per lb.
$15.00
Actual purchase price per lb.
$14.50
Quantity purchased
3,150 lbs.
Quantity used
2,980 lbs.
Standard quantity allowed for actual output
3,000 lbs.
Actual output
1,000 units
Brooks Company reports its material price variances at the time of purchase.
What is the journal entry to record material purchases?
Materials 47,250
Materials Price Variance1,575
Accounts Payable 45,675
Materials 47,165
Materials Price Variance1,490
Accounts Payable 45,675
Materials 47,175
Materials Price Variance1,500
Accounts Payable 45,675
Materials 44,100
Materials Price Variance1,575
Accounts Payable 45,675
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started