Given the Following Account Balances at the End of the First

question 134

Multiple Choice

Given the following account balances at the end of the first year of operations: $\begin{array}{lr}\text { Direct materials inventory } & \$ 60,000 \\\text { Work in process inventory } & 200,000 \\\text { Finished goods inventory } & 200,000 \\\text { Cost of goods sold } & 600,000 \\\text { Direct material price variance } & 65,000 \mathrm{~F} \\\text { Direct material efficiency } & 195,000 \mathrm{U}\end{array}$
Assuming that variances are considered material, the entry and amount of the direct material price variance allocated to Work in Process Inventory is:

• A) Credit $12,264
• B) Credit $3,679
• C) Credit $13,000
• D) Debit $13,000

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Definitions:

Classical Probability

A theory of probability based on equally likely outcomes, where the probability is determined by the ratio of favorable outcomes to the total number of possible outcomes.

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