If 10,000 Pounds of Direct Materials Are Purchased for $9,300

question 155

Short Answer

If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is $\begin{array}{lr}\text {a. Raw Materials Inventory }&9,300\\\quad\text { Accounts Payable}&&9,300\\\text {b. Work In Process Inventory }&9,300\\\quad\text {Accounts Payable }&&9,000\\\quad\text { Materials Quantity Variance}&&300\\\text {c. Raw Materials Inventory }&9,300\\\quad\text { Accounts Payable}&&9,000\\\quad\text { Materials Price Variance}&&300\\\text {d. Raw Materials Inventory }&9,000\\\quad\text { Materials Price Variance}&300\\\quad\text { Accounts Pavable}&&9,300\\\end{array}$

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Definitions:

Aggressive Tendencies

Patterns of behavior aimed at causing harm or injury to others, fear of harm in others, or assertion toward dominance in a social context.

Modeling

A method used in psychology to learn through the observation and replication of others' behaviors.

Perceives

The process of becoming aware of something through the senses and the way in which information is interpreted and understood.

Examination

A formal test of a person's knowledge or proficiency in a subject or skill.