Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

une: $15.00 $14.50 3,150 Ibs. 2,980 lbs. 3,000 lbs. 1,000 units Standard price p

ID: 2560436 • Letter: U

Question

une: $15.00 $14.50 3,150 Ibs. 2,980 lbs. 3,000 lbs. 1,000 units Standard price per lb al purchase price per Ib uantity purchased uantity used Standard quantity allowed for actual output output Brooks Company reports its material price variances at the time of purchase. What is the journal entry to record material purchases? Materials 47,250 Materials Price Variance 1,575 Accounts Payable 45,675 Materials 47,165 Materials Price Variance 1,490 Accounts Payable 45,675 Materials 47,175 Materials Price Variance 1,500 Accounts Payable 45,675 Materials 44,100 Materials Price Variance 1,575 Accounts Payable 45,675

Explanation / Answer

Materials = 47,250 (3,150 lbs * 15 per lb)

Materials price variance = (Actual price - Standard price) * Actual quantity purchased

= (14.5 - 15) * 3,150

= 1,575 Favourable

Accounts Payable = 45,675 (3,150 lbs * 14.5 per lb)

JOURNAL ENTRY

Materials 47,250 Materials Price Variance 1,575 Accounts Payable 45,675