Journal entry beneath a standard costing system


A company purchased materials costing $12,000 that, according to standards, should have cost $11,000. They used $8,000 of the materials (at standard cost) in the current period. The journal entry under a standard costing system would include :

A) a debit to the direct materials quantity variance for $4,000.

B) a debit to the direct materials price variance of $1,000.

C) a credit to cost of goods sold for $4,000.

D) a debit to work-in-process for $11,000.

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Accounting Basics: Journal entry beneath a standard costing system
Reference No:- TGS079263

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