Malkovich Company uses a standard costing system. The following information pert

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Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. $18.00 Actual purchase price per lb. $16.50 Quantity purchased 3,100 lbs. Quantity used 2,950 lbs. Standard quantity allowed for actual output 3,000 lbs. Actual output 1,000 units
Malkovich Company reports its material price variances at the time of purchase.

What is the journal entry to record material purchases? a. Materials 55,800
      Materials Price Variance 4,650
                Accounts Payable 51,150 b. Materials 51,150
Materials Price Variance 4,650
          Accounts Payable 55,800 c. Accounts Payable 55,800
                            Materials 55,800 d. Materials 55,800
              Accounts Payable 55,800 Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. $18.00 Actual purchase price per lb. $16.50 Quantity purchased 3,100 lbs. Quantity used 2,950 lbs. Standard quantity allowed for actual output 3,000 lbs. Actual output 1,000 units
Malkovich Company reports its material price variances at the time of purchase.

What is the journal entry to record material purchases? a. Materials 55,800
      Materials Price Variance 4,650
                Accounts Payable 51,150 b. Materials 51,150
Materials Price Variance 4,650
          Accounts Payable 55,800 c. Accounts Payable 55,800
                            Materials 55,800 d. Materials 55,800
              Accounts Payable 55,800 Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. $18.00 Actual purchase price per lb. $16.50 Quantity purchased 3,100 lbs. Quantity used 2,950 lbs. Standard quantity allowed for actual output 3,000 lbs. Actual output 1,000 units
Malkovich Company reports its material price variances at the time of purchase.

What is the journal entry to record material purchases? a. Materials 55,800
      Materials Price Variance 4,650
                Accounts Payable 51,150 b. Materials 51,150
Materials Price Variance 4,650
          Accounts Payable 55,800 c. Accounts Payable 55,800
                            Materials 55,800 d. Materials 55,800
              Accounts Payable 55,800 Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. $18.00 Actual purchase price per lb. $16.50 Quantity purchased 3,100 lbs. Quantity used 2,950 lbs. Standard quantity allowed for actual output 3,000 lbs. Actual output 1,000 units
Malkovich Company reports its material price variances at the time of purchase.

What is the journal entry to record material purchases? Standard price per lb. $18.00 Actual purchase price per lb. $16.50 Quantity purchased 3,100 lbs. Quantity used 2,950 lbs. Standard quantity allowed for actual output 3,000 lbs. Actual output 1,000 units

Explanation / Answer

Material Price variance is recorded at the time of purchase of material.

Material is debited at standard rate. Any difference is accounted as variance.

So, the journal Entry will be as follows:

Material Dr    55,800.00 [3100*18] Material Price Variance Cr      4,650.00 [3100 ( 18-16.5)] Accounts Payable Cr    51,150.00 [3100*16.5]

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