Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the companys only product is as follows:

Inputs	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	1.7	gallons	$ 7.50	per gallon	$ 12.75
Direct labor	0.70	hours	$ 21.50	per hour	15.05
Fixed manufacturing overhead	0.70	hours	$ 6.00	per hour	4.20
Total standard cost per unit	$ 32.00

During the year, the company completed the following transactions:

1. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon.
2. Used 46,820 gallons of the raw material to produce 27,600 units of work in process.

Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

	Cash	Raw Materials	Work in Process	Finished Goods	PP&E (net)	=	Materials Price Variance	Materials Quantity Variance	Labor Rate Variance	Labor Efficiency Variance	FOH Budget Variance	FOH Volume Variance	Retained Earnings
1/1	$ 1,160,000	$ 45,900	$ 0	$ 67,200	$ 757,400	=	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 2,030,500
a.						=
b.						=

When the purchase of raw materials is recorded in transaction (a) above, which of the following entries will be made?