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

---

Definitions:

Salt Deposits

Concentrations of salt left behind after the evaporation of saline water, typically found in arid environments or sedimentary basins.

Restricted Seaways

Narrow bodies of water that connect two larger bodies of water, often with limited water flow and unique ecological conditions.

Ocean Basins

Large depressions on the Earth's surface that contain the world's oceans, formed by plate tectonics and shaped by geological processes.

Continents Position

The location of the Earth's continents, which changes over geological time due to the movement of tectonic plates.