When the Actual Price Paid on Credit for a Raw

Multiple Choice

When the actual price paid on credit for a raw material is less than 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