Drake Company Purchased Materials on Account

question 77

Multiple Choice

Drake Company purchased materials on account.The entry to record the purchase of materials having a standard cost of $1.50 per kilogram from a supplier at $1.60 per kilogram would include which of the following?

• A) A credit to Raw Materials Inventory.
• B) A debit to Work in Process.
• C) A credit to Materials Price Variance.
• D) A debit to Materials Price Variance.

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Definitions:

Financial Disclosure

The release of financial information by a company to ensure transparency and inform stakeholders about its financial health.

Societal Goal

Refers to the shared objectives or outcomes that a society aims to achieve, such as economic prosperity, social welfare, and environmental sustainability.

Checkoff Provision

A labor union contract clause that requires employers to deduct union dues from employees' paychecks automatically.

Agency Shop Agreement

A labor contract clause requiring employees to either join the union or pay a fee without being forced to become union members.