Elm Company's flexible budget, based upon the number of equivalent units produced, called for the use of $5,000$ square yards of fabric at a standard cost of $$2\mathrm{.}45$ per square yard. The Production Department actually used $5,200$ square yards costing $$2\mathrm{.}35$ per square yard during June.

The journal entry to record the cost of direct materials used in June includes a:

Multiple Choice

Credit to Materials Price Variance of $$520.$

Debit to Work in Process Inventory of $$12,220.$

Credit to Direct Materials Inventory of $$12,250.$

Debit to Materials Price Variance of $$520.$