Atoka Manufacturing uses a standard cost system. Standards for direct materials are as follows:

Direct materials (Pounds per unit of output)	2
Cost per pound of direct materials	$5

Actual purchases of direct materials for the current month are 10,000 pounds for $48.000. Planned and actual production for the month is 3000 units. Atoka has issued 10,000 pounds of direct materials to product-ion. The journal entry to record this transaction is

• A debit to Work-in-Process Inventory for $30.000, a credit to Raw Materials $50.000, and a debit to Direct Materials Efficiency Variance for $20.000.
• A debit to Work-in-Process Inventory for $50.000, a credit to Raw Materials S48.000, and a credit to Direct Materials Efficiency Variance for $2000.
• A debit to Work-in-Process Inventory for $28.800, a credit to Raw Materials 550.000, and a debit to Direct Materials Efficiency Variance for $21,200.
• A debit to Work-in-Process Inventory for $28.800, a credit to Raw Materials 530.000, and a debit to Direct Materials Efficiency Variance for $1200.

Answer rating: 100% (QA)

Std Qty allowed 30002 6000 pounds Std price 5 Actual Qty 10000 pounds Material ... View the full answer