Ajay Company records standard costs and variances in its accounts. Journalize the entry to record the purchase of 6,000 widgets at $8.00 per unit, assuming widgets have a standard cost of $8.15 per unit.

Standard Costs

Pre-determined or estimated costs of manufacturing a product or providing a service, used as targets or benchmarks.

Variances

Differences between planned financial outcomes and the actual results, used for budgetary control and operational analysis.

Widgets

Widgets typically refer to a generic term for any unspecified device or product, often used in examples or explanations of business concepts.