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

A credit to direct materials price variance for $15,250

A debit to direct materials price variance for $15,500

A debit to raw materials inventory for $360,000

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

		A debit to direct materials usage variance for $12,000
		A credit to raw materials inventory for $366,000
		A credit to direct materials usage variance for $12,000
		A credit to raw materials inventory for $360,00

The journal entry to record direct labor cost would include

		A credit to work-in-process inventory for $288,000
		A credit to wages payable for $264,000
		A credit to direct labor efficiency variance for $24,000
		A credit to direct labor rate variance for $11,000

A credit to accounts payable for $366,000

Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products. During the year, Test Company recorded the following actual results. Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products. During the year, Test Company recorded the following actual results