Marciano Manufacturing uses a standard cost system. Standards for direct materials are as​ follows:   Direct materials​ (pounds per unit of​ output) 3 Cost per pound of direct materials $3   The company plans to produce 2,500 units and has purchased on account 15,000 pounds of direct materials at a net cost of $42,000. What is the journal entry to record this​ transaction?   A. Raw Materials Inventory 42,000        Direct Materials Cost Variance   3,000      Accounts Payable   39,000   B. Raw Materials Inventory 39,000   Direct Materials Cost Variance 3,000        Accounts Payable   42,000   C. Raw Materials Inventory 42,000   Direct Materials Cost Variance 3,000        Accounts Payable   45,000   D. Raw Materials Inventory 45,000        Direct Materials Cost Variance   3,000      Accounts Payable   42,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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Marciano Manufacturing uses a standard cost system. Standards for direct materials are as​ follows:
 
Direct materials​ (pounds per unit of​ output)
3
Cost per pound of direct materials
$3
 
The company plans to produce
2,500
units and has purchased on account
15,000
pounds of direct materials at a net cost of
$42,000.
What is the journal entry to record this​ transaction?
 
A.
Raw Materials Inventory
42,000
 
     Direct Materials Cost Variance
 
3,000
     Accounts Payable
 
39,000
 
B.
Raw Materials Inventory
39,000
 
Direct Materials Cost Variance
3,000
 
     Accounts Payable
 
42,000
 
C.
Raw Materials Inventory
42,000
 
Direct Materials Cost Variance
3,000
 
     Accounts Payable
 
45,000
 
D.
Raw Materials Inventory
45,000
 
     Direct Materials Cost Variance
 
3,000
     Accounts Payable
 
42,000
 
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