1.If an analysis shows an unfavorable materials price variance of $22,000, the journal entry to record the...
Question:
1.If an analysis shows an unfavorable materials price variance of $22,000, the journal entry to record the purchase of direct materials and the related price variance would include:
A.a debit to Accounts Payable for $22,000. | |||||||||||||||||||||||||||||||||||||||
B.a debit for $22,000 to Materials Price Variance. | |||||||||||||||||||||||||||||||||||||||
C.a credit for $22,000 to Materials Price Variance. | |||||||||||||||||||||||||||||||||||||||
D.a credit to Work in Process Inventory for $22,000. | |||||||||||||||||||||||||||||||||||||||
E.None of the answer choices is correct. 2. Which of the following is a possible cause for an unfavorable labor rate variance?
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello