Final answer:
The transaction involves accounting entries for direct materials cost and variance from the expected cost, showing the standard cost accounting practices of comparing actual costs against budgeted costs to identify differences.
Step-by-step explanation:
The provided entry appears to be from an accounting ledger involving direct materials control, direct materials price variance, and accounts payable (A/P) control. This reflects a transaction where the cost of direct materials required for production is recorded in the accounting books. An amount of $47,850 is debited to the Direct Materials Control account to represent this cost. Concurrently, there is a credit of $1,740 to the Direct Materials Price Variance account, which indicates a variance from the standard or expected cost of the direct materials. The total amount credited to the A/P Control account is $49,590, which is the sum of the amounts debited to the Direct Materials Control and the Direct Materials Price Variance accounts. This indicates that the company will need to pay $49,590 to its suppliers. These entries are part of standard cost accounting practices where actual costs are compared against standard or budgeted costs to identify variances.