Determine the direct materials price variance.

$5,925 unfavorable

$7,175 unfavorable

$7,175 favorable

$5,925 favorable

Determine the direct labor efficiency variance.

		$3,600 unfavorable
		$1,000 favorable
		$3,600 favorable
		$1,000 unfavorable

The journal entry to record the purchase of raw materials would include

A credit to accounts payable for $360,000

A debit to raw materials inventory for $365,925

A credit to direct materials price variance for $5,925

A debit to direct materials price variance for $7,175

The journal entry to record the issuance of direct materials used to production would include

		A credit to raw materials inventory for $360,000
		A debit to direct materials usage variance for $1,250
		A credit to direct materials usage variance for $3,600
		A debit to work-in-process inventory for $360,000

During the year, Test Company recorded the following actual results. During the year, Test Company recorded the following actual results