Figure 10-7

Multiple Choice

Figure 10-7. During April,a small roofing company purchased 700 bundles of a certain type of shingle at a price of $35 per bundle,$8 more than the standard price.Its standard quantity of this type of shingle is 725 bundles.
Refer to Figure 10-7.What is the journal entry to record the purchase of materials?

A) Materials 19,575 Materials Price Variance 5,800
Accounts Payable 25,375
B) Materials 24,500 Materials Price Variance 5,600
Accounts Payable 18,900
C) Materials 18,900 Materials Price Variance 5,600
Accounts Payable 24,500
D) Materials 25,375 Materials Price Variance 5,800
Accounts Payable 19,575