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

question 11

Short Answer

Roberts Company uses a standard costing system. The following information pertains to direct materials for the month of July: $\begin{array}{lr}\text { Standard price per lb. } & £ 18.00 \\\text { Actual purchase price per } 1 \mathrm{~b} . & £ 16.50 \\\text { Quantity purchased } & 3,100 \mathrm{lbs} . \\\text { Quantity used } & 2,950 \mathrm{lbs} \text {. } \\\text { Standard quantity allowed for actual output } & 3,000 \mathrm{lbs} \text {. } \\\text { Actual output } & 1,000 \text { units }\end{array}$ Roberts Company reports its material price variances at the time of purchase. What is the journal entry to record material purchases?
a.
$\begin{array}{llr} \text { Materials } &55,800\\ \text { Accounta Payable } &&55,800\\\end{array}$


b.
$\begin{array}{llr} \text { Accesunts Payable} &55,800\\ \text { Materials } &&55,800\\\end{array}$

c.
$\begin{array}{llr} \text { Materials} &55,800\\ \text { Materials price Variance } &&4,650\\ \text { Accounta Payable } &&51,150\end{array}$

d.
$\begin{array}{llr} \text {Materials } &51,150\\ \text { Materials price Variance } &4,650\\ \text { Accounta Payable } &&55,800\end{array}$

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