A manufacturer, using a standard cost system, purchased 250 units of direct materials at a cost of $2 per unit

The standard cost per unit of direct materials is $1.85. Prepare the journal entry to record the direct materials cost variance at the time of purchase.
What will be an ideal response

Raw Materials Inventory (250 units x $1.85/unit) 462.50
Direct Materials Cost Variance 37.50
Accounts Payable (250 units x $2/unit) 500.00

Business

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