Marciano Manufacturing uses a standard cost system.Standards for direct materials are as follows:

\begin{array} { | l | l | } \hline \text { Direct materials (pounds per unit of output) } & 3 \\\hline \text { Cost per pound of direct materials } & \$ 3 \\\hline\end{array}

The company plans to produce 3500 units and has purchased on account 15,000 pounds of direct materials at a net cost of $43,200.What is the journal entry to record this transaction?
A)

\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 45,000 & \\\hline \text { Direct Materials Cost Variance } & & 1800 \\\hline \text { Accounts Payable } & & 43,200 \\\hline\end{array}

\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 41,400 & \\\hline \text { Direct Materials Cost Variance } & 1800 & \\\hline \text { Accounts Payable } & & 43,200 \\\hline\end{array}

\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\\hline \text { Direct Materials Cost Variance } & 1800 & \\\hline \text { Accounts Payable } & & 45,000 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\\hline \text { Direct Materials Cost Variance } & & 1800 \\\hline \text { Accounts Payable } & & 41,400 \\\hline\end{array}

Which of the Following Will Result in an Unfavorable Direct

Multiple Choice

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