The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.
-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

Question

The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:  There were no inventories of any kind on August 1. During August, the following events occurred:
  Purchased 15,000 board feet at the total cost of $24,000.
  Used 12,000 board feet to produce 2,100 Mips.
  Used 1,700 hours of direct labor time at a total cost of $20,060.
-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

Quizplus · Accepted Answer

The Answer of The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:  There were no inventories of any kind on August 1. During August, the following events occurred:
  Purchased 15,000 board feet at the total cost of $24,000.
  Used 12,000 board feet to produce 2,100 Mips.
  Used 1,700 hours of direct labor time at a total cost of $20,060.
-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

The Dexon Company Makes and Sells a Single Product Called