[The Following Information Applies to the Questions Displayed Below

question 106

Multiple Choice

[The following information applies to the questions displayed below.]
James Inc.'s flexible budget for June,based upon actual output,called for the use of 10,500 pounds of materials at a standard cost of $7.40 per pound.The Production Department actually used 10,700 pounds of materials costing $7.10 per pound during June.
-The journal entry to record the cost of direct materials used in June includes each of the following except:

• A)A debit to Work in Process Inventory of $77,700.
• B)A credit to Materials Price Variance of $3,210.
• C)A credit to Direct Materials Inventory of $77,700.
• D)A debit to Materials Quantity Variance of $1,480.

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Definitions:

Administrative Budget

A financial plan that outlines the expected administrative expenses and incomes, focusing on managing and operating an organization.

Spare Supplies

Additional or extra materials and items kept on hand to replace or replenish those in use as needed.

Administrative Budget

A financial plan that outlines the projected administrative expenses and revenues for an organization.

Expired Administrative Supplies

Office or medical supplies that are no longer usable or effective because they have passed their expiration date.