Thomas Company Uses a Standard Cost System and Recognizes the Materials

Multiple Choice

Thomas Company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased.Information for raw materials for Product RBI for the month of October follows: What is the entry to record the purchase of materials?

A) Materials 6,600 Material purchase price variance 400
Accounts payable 7,000
B) Materials 7,000 Material purchase price variance 400
Accounts payable 6,600
C) Materials 6,600 Accounts payable 6,600
D) Materials 6,600 Material purchase price variance 330
Accounts payable 6,270