Tulip IncUses Standard Costing,and Its Manufacturing Standards Are as Follows: 2

question 104

Multiple Choice

Tulip Inc.uses standard costing,and its manufacturing standards are as follows: 2 pounds of materials at $13 per pound,and 3 hours of labor at $10 per hour.Budgeted production last period was 5,000 units,and actual production was 4,800 units.Last period,Tulip purchased and used 9,800 pounds of materials for $135,000,and used 15,000 labor hours,costing $145,000.What is the journal entry to record the purchase of materials?

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Definitions:

Economic Models

Simplified representations of complex economic processes used to predict future economic activity or to understand economic dynamics.

Assumptions

Premises or conditions that are accepted as true without proof, used as a basis for reasoning or conduct in theories and models.

Linear Production

A production process where outputs increase in direct proportion to the amounts of inputs, implying a constant ratio of output to input in production functions.

Pairs of Socks

Articles of clothing worn on the feet, typically coming in matching sets of two, one for each foot.