Atlantic Manufacturing Company Uses Standard Costing Methodology in Their Journal $$\begin{array} { l l l l } \text { Hours per unit } & 0.5 & \text { Price per hour } & \$ 18.00\end{array}$$

Multiple Choice

Atlantic Manufacturing Company uses standard costing methodology in their journal entries and accounts. Standards for direct materials are as follows: $$\begin{array} { l l l l } \text { Hours per unit } & 0.5 & \text { Price per hour } & \$ 18.00\end{array}$$ Pounds per unit 2.0 Price per pound $5.00
Atlantic plans to produce 3,000 units of product, and has just purchased 10,000 pounds of raw materials for a net cost of $48,000. The journal entry to record this transaction would be to:

A) debit Materials inventory $50,000, credit Accounts payable $48,000, credit Materials Price Variance $2,000.
B) debit Materials inventory $48,000, credit Accounts payable $48,000.
C) debit Materials inventory $50,000, credit Accounts payable $50,000, credit Materials Price Variance $2,000.
D) debit Materials price variance $2,000, debit Materials inventory $48,000, credit Accounts payable $50,000.