When the Actual Price to Purchase a Raw Material on Account

question 19

Multiple Choice

When the actual price to purchase a raw material on account exceeds its standard price, the journal entry would include:

• A)Debit to Raw Materials; Credit to Materials Price Variance
• B)Debit to Accounts Payable; Credit to Materials Price Variance
• C)Debit to Raw Materials; Debit to Materials Price Variance
• D)Debit to Accounts Payable; Debit to Materials Price Variance

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Definitions:

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