Atlace Manufacturers Uses Standard Costing System The Company Plans to Produce 3,000 Units of Product, and Are

Atlace Manufacturers uses standard costing system. Standards for direct materials are as follows: $$\begin{array} { | l | r | } \hline \text { Raw material pounds per unit of output } & 2 \\\hline \text { Cost per pound of raw material } & \$ 5 \\\hline\end{array}$$ The company plans to produce 3,000 units of product, and has purchased 10,000 pounds of raw materials for a net cost of $48,000. Give the journal entry to record this transaction.

A) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } ( 10,000 \text { pounds } \times \$ 5 / \text { pound } ) & 50,000 & \\\hline \text { Direct Materials Cost Variance } & & 2,000 \\\hline \text { Accounts Payable } ( 10,000 \text { pounds } \times \$ 4.8 / \text { pound } ) & & 48,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } ( 10,000 \text { pounds } \times \$ 5 / \text { pound } ) & 50,000 & \\\hline \text { Direct Materials Cost Variance } & 2,000 & \\\hline \text { Accounts Payable } ( 10,000 \text { pounds } \times \$ 4.8 / \text { pound } ) & & 48,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } ( 10,000 \text { pounds } \times \$ 4.8 / \text { pound } ) & 48,000 & \\\hline \text { Direct Materials Cost Variance } & 2,000 & \\\hline \text { Accounts Payable } ( 10,000 \text { pounds } \times \$ 5 / \text { pound } ) & & 50,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } ( 10,000 \text { pounds } \times \$ 4.8 / \text { pound } ) & 48,000 & \\\hline \text { Direct Materials Cost Variance } & & 2,000 \\\hline \text { Accounts Payable } ( 10,000 \text { pounds } \times \$ 5 / \text { pound } ) & & 50,000 \\\hline\end{array}$$