Widman, Inc

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