Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) 3 Cost per pound of direct materials $ 6 The company plans to produce 2 comma 000 units and has purchased on account 12 comma 000 pounds of direct materials at a net cost of $ 43 comma 800. What is the journal entry to record this transaction?

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:

Details                                                Dr ($)                 Cr ($)        

Raw Materials Inventory                   72,000

Direct materials Cost Variance                                   28,200

Accounts Payable                                                        43,800

To record direct materials cost and variance.                                

answer; ///(c) i believe its it ignores cash flows following the payback period;