Marciano Manufacturing Uses a Standard Cost System The Company Plans to Produce 3500 Units and Has Purchased

question 39

Multiple Choice

Marciano Manufacturing uses a standard cost system.Standards for direct materials are as follows: $\begin{array}{|l|r|}\hline\text { Direct materials (pounds per unit of output) } & 3 \\\hline \text { Cost per pound of direct materials } & \$ 3\\\hline\end{array}$ The company plans to produce 3500 units and has purchased on account 15,000 pounds of direct materials at a net cost of $43,200.What is the journal entry to record this transaction?

• A) \[\begin{array}{l}\begin{array} { | l | r | r | }
• \hline\text { Raw Materials Inventory }&45,000\\
• \hline \text { Direct Materials Cost Variance } & & 1800 \\
• \hline \text { Accounts Payable } & & 43,200 \\
• \hline
• \end{array}
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Raw Materials Inventory } & 41,400 & \\
• \hline \text { Direct Materials Cost Variance } & 1800 & \\
• \hline \text { Accounts Payable } & & 43,200 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Raw Materials Inventory } & 43,200 & \\
• \hline \text { Direct Materials Cost Variance } & 1800 & \\
• \hline \text { Accounts Payable } & & 45,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array}{l}\begin{array} { | l | r | r | }
• \hline\text { Raw Materials Inventory }&43,200\\
• \hline \text { Direct Materials Cost Variance } & & 1800 \\
• \hline \text { Accounts Payable } & & 41,400 \\
• \hline
• \end{array}
• \end{array}\]

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Definitions:

Continental Crust

The Earth's outer layer comprising granite-rich, less dense rock that makes up the continents.

Oceanic Crust

The part of the Earth's crust that underlies the oceans, thinner and denser than the continental crust.

Salt Deposits

Concentrations of salt left behind when water evaporates, often found in arid environments or as part of geological formations.

NaCl

Sodium chloride, a chemical compound more commonly known as table salt.