A Company Records Their Inventory Purchases at Standard Cost but Also

question 4

Multiple Choice

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 $7.60. Which of the following would be included in the journal entry?

• A) $38,000 Debit to Accounts Payable
• B) $ 2,000 Credit to Direct Materials Price Variance
• C) $ 2,000 Debit to Accounts Payable
• D) $ 2,000 Debit to Direct Materials Price Variance

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Definitions:

Operant Conditioning

A method of learning where the intensity of an action is altered by either rewards or penalties.

White Rat

Often used in laboratory experiments, these are albino rats specifically bred for research purposes.

Rosalie Rayner

An American psychologist known for her work with John B. Watson on the Little Albert experiment, demonstrating classical conditioning in humans.

Freudian Analysis

A psychotherapeutic approach developed by Sigmund Freud focusing on uncovering unconscious thoughts and motivations to treat psychopathologies.