Marciano Manufacturing Uses a Standard Cost System The Company Plans to Produce 3500 Units and Has Purchased

Multiple Choice

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) $$\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 45,000 & \\\hline \text { Direct Materials Cost Variance } & & 1800 \\\hline \text { Accounts Payable } & & 43,200 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 41,400 & \\\hline \text { Direct Materials Cost Variance } & 1800 & \\\hline \text { Accounts Payable } & & 43,200 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\\hline \text { Direct Materials Cost Variance } & 1800 & \\\hline \text { Accounts Payable } & & 45,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\\hline \text { Direct Materials Cost Variance } & & 1800 \\\hline \text { Accounts Payable } & & 41,400 \\\hline\end{array}$$