Acme Company uses a standard cost accounting system. All raw…
Acme Company uses a standard cost accounting system. All raw materials are direct materials, and all the raw materials purchased during the year are used during the year. The spending variance for direct materials is $2,100 favorable. Acme makes the following entry to record the use of direct materials: Dr. Work in Process Inventory $23,900, Dr. Quantity Variance $3,400, Cr. Raw Materials Inventory $27,300. The journal entry that Acme makes to record the purchase of direct materials includes:
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