Seafarer Company Established a Standard Direct Materials Cost of 1

Multiple Choice

Seafarer Company established a standard direct materials cost of 1.5 gallons at $2 per gallon for one unit of its product. During the past month, actual production was 6,500 units. The material quantity variance was $700 favorable and the material price variance was $470 unfavorable. The entry to charge Work in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include all of the following except:

A) A credit to Raw Materials for $19,270.
B) A debit to Cost of Goods Sold for $230.
C) A credit to Direct Material Quantity Variance for $700.
D) A debit to Work in Process for $19,500.
E) A debit to Direct Material Price Variance for $470.