Widman, Inc

question 29

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:

Accommodation

Ability of electrically excitable tissues, such as nerve or muscle cells, to adjust to a constant stimulus so that the magnitude of the local potential decreases through time; also called adaptation.

Convergence

The tendency of unrelated animals and plants to evolve superficially similar characteristics under similar environmental conditions or the movement of eyes inward towards the nose.

Cone Sensitive

Refers to the responsiveness of cone cells in the retina to different wavelengths of light, enabling color vision.

Lens Rigidity

The stiffness of the eye's lens, which increases with age, affecting its ability to change shape and focus on objects at various distances.