Question

If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is Raw Materials Inventory 9,300 Accounts Payable 9,000 Materials Price Variance 300 Raw Materials Inventory 9,000 Materials Price Variance 300 Accounts Payable 9,300 Work In Process Inventory 9,300 Accounts Payable 9,000 Materials Quantity Variance 300 Raw Materials Inventory 9,300 Accounts Payable 9,300

Answer 1

Raw Materials Inventory 9,000 Materials Price Variance 300 Accounts Payable 9,300

Step-by-step explanation:

Based on the information given journal entry to record the purchase is

Dr Raw Materials Inventory $9,000

(10,000 pounds*$.90 per pound)

Dr Materials Price Variance $300

($9,300-$9,000)

Cr Accounts Payable $9,300

(To record purchase)