Widman, Inc

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 use of direct materials in production last period would include:

A) Work in process $1,400, Debit; materials quantity variance $175, Debit
B) Work in process $1,575, Debit; materials quantity variance $175, Credit
C) Work in process $1,400, Debit; materials quantity variance $175, Credit
D) Work in process $1,575, Debit; materials quantity variance $175, Debit