31. 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:
32. 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:
33. 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:
34. Compound K52E is a raw material used to make Pinkos Corporation’s major product. The
standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per
unit of output. Data concerning the compound for March appear below:
Cost of material purchased in March, per ounce $46.60
Material purchased in March, ounces 3,700
Material used in production in March, ounces 3,570
Actual output in March, units 800
The raw material was purchased on account.
The debits to the Raw Materials account for March would total:
35. Compound K52E is a raw material used to make Pinkos Corporation’s major product. The
standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per
unit of output. Data concerning the compound for March appear below:
Cost of material purchased in March, per ounce $46.60
Material purchased in March, ounces 3,700
Material used in production in March, ounces 3,570
Actual output in March, units 800
The raw material was purchased on account.
The credits to the Raw Materials account for March would total:
36. Compound K52E is a raw material used to make Pinkos Corporation’s major product. The
standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per
unit of output. Data concerning the compound for March appear below:
Cost of material purchased in March, per ounce $46.60
Material purchased in March, ounces 3,700
Material used in production in March, ounces 3,570
Actual output in March, units 800
The raw material was purchased on account.
The Materials Price Variance for March would be recorded as a:
37. Compound K52E is a raw material used to make Pinkos Corporation’s major product. The
standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per
unit of output. Data concerning the compound for March appear below:
Cost of material purchased in March, per ounce $46.60
Material purchased in March, ounces 3,700
Material used in production in March, ounces 3,570
Actual output in March, units 800
The raw material was purchased on account.
The Materials Quantity Variance for March would be recorded as a:
38. Florea Corporation has provided the following data concerning its most important raw
material, compound K09B:
Standard cost, per liter $26.50
Standard quantity, liters per unit of output 6.0
Cost of material purchased in August, per liter $26.70
Material purchased in August, liters 1,500
Material used in production in August, liters 560
Actual output in August, units 100
The raw material was purchased on account.
The debits to the Raw Materials account for August would total:
39. Florea Corporation has provided the following data concerning its most important raw
material, compound K09B:
Standard cost, per liter $26.50
Standard quantity, liters per unit of output 6.0
Cost of material purchased in August, per liter $26.70
Material purchased in August, liters 1,500
Material used in production in August, liters 560
Actual output in August, units 100
The raw material was purchased on account.
The credits to the Raw Materials account for August would total:
40. Florea Corporation has provided the following data concerning its most important raw
material, compound K09B:
Standard cost, per liter $26.50
Standard quantity, liters per unit of output 6.0
Cost of material purchased in August, per liter $26.70
Material purchased in August, liters 1,500
Material used in production in August, liters 560
Actual output in August, units 100
The raw material was purchased on account.
The Materials Price Variance for August would be recorded as a:
41. Florea Corporation has provided the following data concerning its most important raw
material, compound K09B:
Standard cost, per liter $26.50
Standard quantity, liters per unit of output 6.0
Cost of material purchased in August, per liter $26.70
Material purchased in August, liters 1,500
Material used in production in August, liters 560
Actual output in August, units 100
The raw material was purchased on account.
The Materials Quantity Variance for August would be recorded as a:
42. Enwall Corporation’s standard wage rate is $11.20 per direct labor-hour (DLH) and
according to the standards, each unit of output requires 2.9 DLHs. In December, 5,900 units were
produced, the actual wage rate was $10.20 per DLH, and the actual hours were 14,150 DLHs.
In the journal entry to record the incurrence of direct labor costs in December, the Work in
Process entry would consist of a:
43. Enwall Corporation’s standard wage rate is $11.20 per direct labor-hour (DLH) and
according to the standards, each unit of output requires 2.9 DLHs. In December, 5,900 units were
produced, the actual wage rate was $10.20 per DLH, and the actual hours were 14,150 DLHs.
The Labor Rate Variance for December would be recorded as a:
44. Enwall Corporation’s standard wage rate is $11.20 per direct labor-hour (DLH) and
according to the standards, each unit of output requires 2.9 DLHs. In December, 5,900 units were
produced, the actual wage rate was $10.20 per DLH, and the actual hours were 14,150 DLHs.
The Labor Efficiency Variance for December would be recorded as a:
45. Cafferty Corporation has provided the following data concerning its direct labor costs for
March:
Standard wage rate $12.80 per DLH
Standard hours 1.3 DLHs per unit
Actual wage rate $12.50 per DLH
Actual hours 2,850 DLHs
Actual output 2,000 units
The journal entry to record the incurrence of direct labor costs in March would include the
following for Work in Process:
46. Cafferty Corporation has provided the following data concerning its direct labor costs for
March:
Standard wage rate $12.80 per DLH
Standard hours 1.3 DLHs per unit
Actual wage rate $12.50 per DLH
Actual hours 2,850 DLHs
Actual output 2,000 units
The Labor Rate Variance for March would be recorded as a: