Use the following information for the next 2 questions.
Given the following account balances at the end of the first year of operations:
-Assuming that variances are considered material, the entry and amount of the direct material price variance allocated to Cost of Goods Sold is
A) Debit $40,625
B) Debit $41,082
C) Credit $43,333
D) Debit $39,935

Question

Use the following information for the next 2 questions.
Given the following account balances at the end of the first year of operations: 
-Assuming that variances are considered material, the entry and amount of the direct material price variance allocated to Cost of Goods Sold is
A) Debit $40,625 
B) Debit $41,082 
C) Credit $43,333 
D) Debit $39,935

Quizplus · Accepted Answer

The direct material price variance is unfavorable, resulting in a debit to Cost of Goods Sold. The amount is calculated as the difference between the actual cost and the standard cost of materials used, which is $40,625.

Use the Following Information for the Next 2 Questions