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 price variance allocated to Cost of Goods Sold is:

A) Debit $40,625
B) Debit $41,082
C) Credit $43,333
D) Debit $39,935