Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase.
What is the journal entry to record material purchases?
A) Materials 55,800 Materials Price Variance 4,650 Accounts Payable 51,150
B) Accounts Payable 55,800 Materials 55,800
C) Materials 55,800 Accounts Payable 55,800
D) Materials 51,150 Materials Price Variance 4,650 Accounts Payable 55,800

Question

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:  Malkovich Company reports its material price variances at the time of purchase.
What is the journal entry to record material purchases?
A) Materials 55,800 Materials Price Variance 4,650 Accounts Payable 51,150 
B) Accounts Payable 55,800 Materials 55,800 
C) Materials 55,800 Accounts Payable 55,800 
D) Materials 51,150 Materials Price Variance 4,650 Accounts Payable 55,800

Quizplus · Accepted Answer

The Answer of Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:  Malkovich Company reports its material price variances at the time of purchase.
What is the journal entry to record material purchases?
A) Materials 55,800 Materials Price Variance 4,650 Accounts Payable 51,150 
B) Accounts Payable 55,800 Materials 55,800 
C) Materials 55,800 Accounts Payable 55,800 
D) Materials 51,150 Materials Price Variance 4,650 Accounts Payable 55,800

Malkovich Company Uses a Standard Costing System