Given the Following Account Balances at the End of the First

Multiple Choice

Given the following account balances at the end of the first year of operations: $$\begin{array} { l r } \text { Direct materials inventory } & \$ 60,000 \\\text { Work in process inventory } & 120,000 \\\text { Finished goods inventory } & 180,000 \\\text { Cost of goods sold } & 600,000 \\\text { Direct material price variance } & 65,000 \mathrm { U } \\\text { Direct material efficiency } & 195,000 \mathrm {~F}\end{array}$$ Assuming that variances are considered material, the entry and amount of the direct material efficiency variance allocated to work in process inventory is:

A) Credit $26,000
B) Credit $24,375
C) Debit $17,333
D) Debit $8,125