Mejor Medical Machines manufactures hospital equipment. The company recently
purchased materials for production, and was able to secure a bulk purchase discount with an additional prompt payment cash discount. As a result, the original purchase on account with all of the discounts was $3,900, which resulted in a Direct Materials (DM) Price Variance of $900, favorable. Record the journal entry to recognize this raw materials purchase for Mejor Medical assuming that the variance is recognized at the time of purchase.

Question

Mejor Medical Machines manufactures hospital equipment. The company recently 
purchased materials for production, and was able to secure a bulk purchase discount with an additional prompt payment cash discount. As a result, the original purchase on account with all of the discounts was $3,900, which resulted in a Direct Materials (DM) Price Variance of $900, favorable. Record the journal entry to recognize this raw materials purchase for Mejor Medical assuming that the variance is recognized at the time of purchase.

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The Answer of Mejor Medical Machines manufactures hospital equipment. The company recently 
purchased materials for production, and was able to secure a bulk purchase discount with an additional prompt payment cash discount. As a result, the original purchase on account with all of the discounts was $3,900, which resulted in a Direct Materials (DM) Price Variance of $900, favorable. Record the journal entry to recognize this raw materials purchase for Mejor Medical assuming that the variance is recognized at the time of purchase.

Mejor Medical Machines Manufactures Hospital Equipment