The purchase and unfavorable direct materials price


Assuming that the Morocco Desk Co. purchases 6,000 feet of lumber at $6.00 per foot and the standard price for direct materials is $5.00, the entry to record the purchase and unfavorable direct materials price variance is:

Direct Materials                                       30,000
Direct Materials Price Variance                6,000
Accounts Payable                                                         36,000

Direct Materials                                      30,000
Accounts Payable                                                         30,000

Direct Materials                                      36,000
Direct Materials Price Variance                                     6,000
Accounts Payable                                                         30,000

Work in Process                                      36,000
Direct Materials Price Variance                                      6,000
Accounts Payable                                                          30,000

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Accounting Basics: The purchase and unfavorable direct materials price
Reference No:- TGS0677044

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