(Appendix 10B)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.15,000 * 1.50 - 24,000 = $1,500 debit.

Question

Quizplus · Accepted Answer

The Materials Price Variance account is a control account to monitor the difference between actual prices paid for materials and the standard prices. Since the actual price paid is less than the standard price, there is a favorable variance, which is recorded as a debit to the Materials Price Variance account. Therefore, the entry to the Materials Price Variance account would be a $1,500 debit.

(Appendix 10B)To Record the Purchase of Direct Materials,the General Ledger