During September, a small roofing company purchased 200 bundles of a certain type of shingle at a price of $25 per bundle, $5 less than the standard price.Its standard quantity of this type of shingle is 400 bundles.What is the journal entry to record the purchase of materials?

Question

Quizplus · Accepted Answer

Standard price = Actual price + $5 = $25 + $5 = $30
Materials = Standard price × Actual quantity = $30 × 200 = $6,000
Materials price variance = (Actual price - Standard price) × Actual quantity
= ($25 - $30) × 200 = $1,000 F

During September, a Small Roofing Company Purchased 200 Bundles of a Certain