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Question(s) / Instruction(s):

A company records their inventory purchases at standard cost but also records purchase price variances. The company purchased 5,000 widgets $8.00; the standard cost for the widgets is $7.80. Which of the following would be included in the journal entry?
a)    $39,000 Credit to Accounts Payable
b)    $1,000 Debit to Direct Materials Price Variance
c)    $1,000 Credit to Direct Materials Price Variance
d)    $39,000 Debit to Accounts Payable

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