Brooks company reports its material price variances at the


Problem - Brooks Company uses a standard costing system. The following information pertains to direct materials for the month of June:

Standard price per lb. $15.00

Actual purchase price per lb. $14.50

Quantity purchased 3,150 lbs.

Quantity used 2,980 lbs.

Standard quantity allowed for actual output 3,000 lbs.

Actual output 1,000 units

Brooks Company reports its material price variances at the time of purchase.

What is the journal entry to record material purchases?

Materials 47,250

Materials Price Variance 1,575

Accounts Payable 45,675

Materials 47,165

Materials Price Variance 1,490

Accounts Payable 45,675

Materials 47,175

Materials Price Variance 1,500

Accounts Payable 45,675

Materials 44,100

Materials Price Variance 1,575

Accounts Payable 45,675

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Accounting Basics: Brooks company reports its material price variances at the
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