If a Company Records Inventory Purchases at Standard Cost and Also

question 64

Essay

If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of 6,000 widgets that were bought at $8.00 and have a standard cost of $8.15.

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Definitions:

Oxidizing Agent

A substance that has the ability to oxidize other substances, meaning it gains electrons in the process.

Reagents

Substances or compounds that are added to a system in order to bring about a chemical reaction or to see if a reaction occurs.

NaOCl

Sodium hypochlorite, commonly known as bleach, a chemical widely used as a disinfectant and bleaching agent.

Acetic Acid

Acetic acid is a weak carboxylic acid with the chemical formula CH3COOH, recognizable by its sour taste and pungent smell, commonly found in vinegar.