When the Actual Price to Purchase a Raw Material on Account

Multiple Choice

When the actual price to purchase a raw material on account exceeds its standard price, the journal entry would include:

A) Debit to Raw Materials; Credit to Materials Price Variance
B) Debit to Accounts Payable; Credit to Materials Price Variance
C) Debit to Raw Materials; Debit to Materials Price Variance
D) Debit to Accounts Payable; Debit to Materials Price Variance