Thomas Company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased. Information for raw materials for Product RBI for the month of October follows: Standard unit price $1.75 Actual purchase price per unit $1.65 Actual quantity purchased 4,000 units Actual quantity used 3,900 units Standard quantity allowed for actual production

3,800 units What is the entry to record the purchase of materials?
a. Materials 6,600
Material purchase price variance 400
Accounts payable 7,000
b. Materials 7,000
Material purchase price variance 400
Accounts payable 6,600 .
c. Materials 6,600
Accounts payable 6,600
d. Materials 6,600
Material purchase price variance 330
Accounts payable 6,270


b

Business

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