Figure 10-9

Multiple Choice

Figure 10-9. James Company manufactures t-shirts.During the year,it manufactured 250,000 t-shirts,using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:
It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
Refer to Figure 10-9.What is the entry to record the purchase of materials?

A) Materials 3,500,000 Materials Price Variance 750,000
Accounts Payable 4,250,000
B) Materials 4,200,000 Materials Price Variance 750,000
Accounts Payable 4,950,000
C) Materials 4,200,000 Materials Price Variance 700,000
Accounts Payable 3,500,000
D) Materials 3,500,000 Materials Price Variance 700,000
Accounts Payable 4,200,000