The Dexon Company Makes and Sells a Single Product Called

question 33

Multiple Choice

The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.
-To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?

• A) $1,500 credit
• B) $1,500 debit
• C) $6,000 credit
• D) $6,000 debit

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