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In a standard cost accounting system, the entry to record purchase of raw materials on account for $13500 when the standard cost is $12620 includes:______.

a. debit to Raw Materials Inventory for 12,750, debit to Materials Price Variance for $750 and credit to Accounts Payable for $13,500.
B. debit to Materials Price Variance for S7S0 and credit to Accounts Payable for $750.
c. debit to Raw Materials Inventory for $13,500 and credit to Accounts Payable of $13,500.
d. debit to Raw Materials Inventory for $12,750 and credit to Accounts Payable of $12,750.

1 Answer

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Answer:

a. Debit to raw material inventory for $12,750, debit to material price variance $750 and credit to account payable for $13,500.

Step-by-step explanation:

Date Journal Entry Debit Credit

Raw Material Inventory $12,750

Material Price Variance $750

Accounts Payable $13,500

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