Answer:
Debit Raw Materials Inventory with $72,000; Credit Direct materials Cost Variance with 28,200, and Credit Accounts Payable with $43,800.
Explanation:
Direct materials purchase on account = $43,800
Standard cost of direct materials = 12,000 * $6 = $72,000
Direct materials cost variance = $72,000 - $43,800 = $28,200
The journal entries will therefore be as follows:
<u>Details Dr ($) Cr ($) </u>
Raw Materials Inventory 72,000
Direct materials Cost Variance 28,200
Accounts Payable 43,800
<em><u>To record direct materials cost and variance. </u></em>
