Widman, Inc

question 1

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 use of direct materials in production last period would include:

• A)Work in process $1,400, Debit; materials quantity variance $175, Debit
• B)Work in process $1,575, Debit; materials quantity variance $175, Credit
• C)Work in process $1,400, Debit; materials quantity variance $175, Credit
• D)Work in process $1,575, Debit; materials quantity variance $175, Debit

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Definitions:

Crosstabulation

A method of tabulating data that allows for the comparison of two or more variables by creating a matrix that displays their interaction.

Categorical Variables

Variables that represent types or categories that data can fall into; they can be nominal (no specific order) or ordinal (with some order or ranking).

Quantitative Variables

Variables that are measurable and can be expressed numerically, representing counts or measurements.

Categorical Data

Data that can be separated into specific categories according to distinct characteristics that are non-numeric.