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: Direct materials inventory $ 60,000
Work in process inventory 120,000
Finished goods inventory 180,000
Cost of goods sold 600,000
Direct material price variance 65,000 U
Direct material efficiency 195,000 F
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