If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15. The total amount owed to the vendor for this purchase is $33,525.

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Putri novaliza Novaliza · Accepted Answer

Final Answer :   Materials  ( 4 , 500 × $ 7.15 ) 32 , 175  Direct Materials Price Variance  1 , 350  Accounts Payable  ( 4 , 500 × $ 7.45 ) 33 , 525 \begin{array} { | c | r | r | } \hline 	ext { Materials } ( 4,500 	imes \$ 7.15 )  &  32,175  &  \\hline 	ext { Direct Materials Price Variance }  &  1,350  &  \\hline 	ext { Accounts Payable } ( 4,500 	imes \$ 7.45 )  &   &  33,525 \\hline\end{array}  Materials  ( 4 , 500 × $7.15 )  Direct Materials Price Variance   Accounts Payable  ( 4 , 500 × $7.45 ) ​ 32 , 175 1 , 350 ​ 33 , 525 ​ ​

If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15. The total amount owed to the vendor for this purchase is $33,525.

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