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:

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.

Foot-In-The-Door

A persuasion technique involving getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.

Compliance

The act of conforming to, obeying, or fulfilling a request, rule, or command.

Request

An expression of desire or need for something to be given or done, often directed towards someone who can fulfill that need.