Refer to Roofus Company. What is the journal entry to record the purchase of materials?
A) Materials 18,900
Materials Price Variance 5,600
Accounts Payable 24,500
B) Materials 19,575
Materials Price Variance 5,800
Accounts Payable 25,375
C) Materials 24,500
Materials Price Variance 5,600
Accounts Payable 18,900
D) Materials 25,375
Materials Price Variance 5,800
Accounts Payable 19,575

Question

Quizplus · Accepted Answer

The journal entry to record the purchase of materials should debit Materials for the actual cost, credit Accounts Payable for the amount owed, and account for any price variance.