Atlace Manufacturing Uses a Standard Cost System The Company Plans to Produce 3,000 Units and Has Purchased

Atlace Manufacturing uses a standard cost system.Standards for direct materials are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials (pounds per unit of output) } & 3 \\\hline \text { Cost per pound of direct materials } & \$ 4 \\\hline\end{array}$$ The company plans to produce 3,000 units and has purchased 12,000 pounds of direct materials at a net cost of $43,200.What is the journal entry to record this transaction?

A) $$\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } ( 12,000 \text { pounds } \times \$ 4 / \text { pound } ) & 48,000 & \\\hline \text { Direct Materials Cost Variance } & & 4,800 \\\hline \text { Accounts Payable } ( 12,000 \text { pounds } \times \$ 3.60 / \text { pound } ) & & 43,200 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } ( 12,000 \text { pounds } \times \$ 4 / \text { pound } ) & 48,000 & \\\hline \text { Direct Materials Cost Variance } & 4,800 & \\\hline \text { Accounts Payable } ( 12,000 \text { pounds } \times \$ 3.60 / \text { pound } ) & & 43,200 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } ( 12,000 \text { pounds } \times \$ 3.60 / \text { pound } ) & 43,200 & \\\hline \text { Direct Materials Cost Variance } & 4,800 & \\\hline \text { Accounts Payable } ( 12,000 \text { pounds } \times \$ 4 / \text { pound } ) & & 48,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } ( 12,000 \text { pounds } \times \$ 3.60 / \text { pound } ) & 43,200 & \\\hline \text { Direct Materials Cost Variance } & & 4,800 \\\hline \text { Accounts Payable } ( 12,000 \text { pounds } \times \$ 4 / \text { pound) } & & 48,000 \\\hline\end{array}$$