​ *Actual Hours Are Equal to Standard Hours for Units Produced.​

question 165

Multiple Choice

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*Actual hours are equal to standard hours for units produced.​
-A company records its inventory purchases at standard cost but also records purchase price variances. The company purchased 5,000 widgets at $8.00 each, and the standard cost for the widgets is $7.60. Which of the following would be included in the journal entry?

• A)debit Accounts Payable, $38,000
• B)credit Direct Materials Price Variance, $2,000
• C)debit Accounts Payable, $2,000
• D)debit Direct Materials Price Variance, $2,000

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Definitions:

Stock Keeping Unit

A scannable barcode, often seen as a number or code on products, that allows items to be tracked in inventory.

Unique Identification

A specific identifier assigned to an individual, product, or entity that distinguishes it from others within a system or market.

Inventory Purposes

The reasons or objectives for maintaining a stock of goods or materials, such as ensuring product availability, meeting customer demand, or controlling production processes.

Method of Delivery

The approach or means by which a product or service is provided to the customer, such as in-person, online, or through mail order.