During April, a small roofing company purchased 400 bundles of a certain type of shingle at a price of $40 per bundle, $5 more than the standard price.The standard quantity of this type of shingle is 440 bundles. ?
What is the journal entry to record the purchase of materials?

Question

Quizplus · Accepted Answer

Accounts payable = Actual price × Actual quantity = $40 × 400 = $16,000
Materials price variance = (Actual price - Standard price*) × Actual quantity
= ($40 - $35) × 400 = $5 × 400 = $2,000 U
Materials = Actual quantity × Standard price* = 400 × $35 = $14,000
*Standard price = $40 - $5 = $35

During April, a Small Roofing Company Purchased 400 Bundles of a Certain