Brooks Company Uses a Standard Costing System Brooks Company Reports Its Material Price Variances at the Time

question 99

Multiple Choice

Brooks Company uses a standard costing system. The following information pertains to direct materials for the month of June: $\begin{array}{ll}\text { Standard price per lb. } & \$ 15.00 \\\text { Actual purchase price per lb. } & \$ 14.50 \\\text { Quantity purchased } & 3,150 \mathrm{lbs} \\\text { Quantity used } & 2,980 \mathrm{lbs} \\\text { Standard quantity allowed for actual output } & 3,000 \mathrm{lbs} \\\text { Actual output } & 1,000 \text { units }\end{array}$ Brooks Company reports its material price variances at the time of purchase.
What is the journal entry to record material purchases?

• A)Materials 47,250 Materials Price Variance1,575
• Accounts Payable 45,675
• B)Materials 47,165 Materials Price Variance1,490
• Accounts Payable 45,675
• C)Materials 47,175 Materials Price Variance1,500
• Accounts Payable 45,675
• D)Materials 44,100 Materials Price Variance1,575
• Accounts Payable 45,675

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