Widman, Inc

question 38

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 incurrence of direct labor cost last period would include:

• A)Work in process $7,200, Debit; labor efficiency variance $400, Credit
• B)Work in process $7,200, Debit; labor efficiency variance $400, Debit
• C)Work in process $6,800, Debit; labor rate variance $425, Debit
• D)Work in process $6,800, Debit; labor rate variance $425, Credit

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Definitions:

Haploid Spores

Unicellular, reproductive cells with half the usual number of chromosomes, capable of developing into a new organism.

Eukaryotic Cell Cycle

A series of phases that eukaryotic cells go through for growth and division, including the stages of interphase (G1, S, G2) and mitosis or meiosis.

DNA Replication

The process by which a cell duplicates its DNA before it divides, ensuring that each daughter cell receives an exact copy of the DNA.

Homologous Pairs

Pairs of chromosomes that have the same structure and gene sequence, matching one inherited from each parent.