The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred:

• Purchased 17,000 pounds of material at a total cost of $190,000.
• Used 15,000 pounds of material to produce 2,400 Kitts.
• Used 1,900 hours of direct labor time at a total cost of $38,000.
-Odle Company purchased material on account.The entry to record the purchase of materials will include a:
A)credit to Work in Process.
B)debit to Accounts Receivable.
C)credit to Accounts Payable.
D)credit to Raw Materials Inventory.

Question

The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred:

• Purchased 17,000 pounds of material at a total cost of $190,000.
• Used 15,000 pounds of material to produce 2,400 Kitts.
• Used 1,900 hours of direct labor time at a total cost of $38,000. 
-Odle Company purchased material on account.The entry to record the purchase of materials will include a:
A)credit to Work in Process.
B)debit to Accounts Receivable.
C)credit to Accounts Payable.
D)credit to Raw Materials Inventory.

Quizplus · Accepted Answer

Raw Materials would be debiteMaterials Price Variance could be debited or crediteAccounts Payable would be credite

The Odle Company Makes and Sells a Single Product Called