Landlubber Company established a standard direct materials cost of 1.5 gallons at $2 per gallon for one unit of its product.During the past month,actual production was 6,500 units.The material quantity variance was $700 favorable and the material price variance was $470 unfavorable.The entry to charge Goods in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include:

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The entry includes all the choices: debit to Goods in Process for standard cost ($19,500), credit to Raw Materials for actual cost ($19,270), debit to Direct Material Price Variance for unfavorable variance ($470), and credit to Direct Material Quantity Variance for favorable variance ($700).

Landlubber Company Established a Standard Direct Materials Cost of 1