A company purchased 700 cartons of a certain type of paper at a price of $35 per

Question

A company purchased 700 cartons of a certain type of paper at a price of $35 per carton. The standard price is $27. Its standard quantity of this type of paper is 725 cartons.

What is the journal entry to record the issuance and usage of materials assuming that the company purchased and used 700 cartons?

A. Work in Process                 18,900
Materials Usage Variance           675
       Materials                         19,575

B. Work in Process                 19,575
       Materials Usage Variance             675
       Materials                         18,900

C. Work in Process                 24,500
Materials Usage Variance           875
       Materials                         25,375

D. Work in Process                 25,375
       Materials Usage Variance             875
       Materials                         24,500

Explanation / Answer

A company purchased 700 cartons of a certain type of paper at a price of $35 per

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