The Odle Company Makes and Sells a Single Product Called

question 8

Multiple Choice

The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred:

• Purchased 17,000 pounds of material at a total cost of $190,000.
• Used 15,000 pounds of material to produce 2,400 Kitts.
• Used 1,900 hours of direct labor time at a total cost of $38,000.
-Odle Company purchased material on account.The entry to record the purchase of materials will include a:

• A)credit to Work in Process.
• B)debit to Accounts Receivable.
• C)credit to Accounts Payable.
• D)credit to Raw Materials Inventory.

---

Definitions:

Readiness

The state of being prepared and fully equipped to engage in, or deal with, a specific task, activity, or situation.

Learning Needs

The requirements for knowledge or skill development necessary for an individual to effectively perform tasks or understand specific subjects.

Discharged

The process of releasing a patient from a hospital or medical facility after treatment.

Self-injection

The process of administering one's own medication directly into the body using a syringe or similar device.