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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Definitions:

Social Security taxes

Funds gathered from both workers and their employers to support the Social Security system, offering benefits for retirement, disability, and survivors.

IRS

The Internal Revenue Service, the federal agency responsible for administering and enforcing the tax laws and collecting taxes in the United States.

Large Corporation

A significant-sized company that operates usually across multiple countries, having considerable influence and financial turnover.

Paid

The status of having received money in exchange for goods or services, or as compensation for work done.