Widman, Inc

question 50

Multiple Choice

Widman, Inc. makes and sells only one product and uses standard costing. The standard cost sheet for one unit of product includes the following: • Direct materials: 5 grams at $0.35 per gram
• Direct labor: 1 hour at $8 per hour
Last period the company had the following results:
• 5,000 grams of direct materials purchased at $0.40 per gram
• 4,000 grams of direct materials used in production
• 900 units of product were made
• 850 hours of direct labor were used at $8.50 per hour
The journal entry to record the purchase of direct materials last period would include:

• A)Raw materials $2,000, Debit; materials price variance $250, Credit
• B)Raw materials $1,750, Debit; materials price variance $250, Credit
• C)Raw materials $2,000, Debit; materials price variance $250, Debit
• D)Raw materials $1,750, Debit; materials price variance $250, Debit

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Definitions:

Heat Energy

The form of energy that is transferred between two substances at different temperatures, manifesting as thermal energy in the process of its transfer.

Frozen

The state of being solidified by cold temperatures, or metaphorically, immobilized by circumstances.

High Altitude

Describes locations at a significant height above sea level, affecting various physical, mechanical, and physiological processes.