Titus Company Purchased on Account and Used 650 Pounds of Tomatoes

Essay

Titus Company purchased on account and used 650 pounds of tomatoes
(direct materials) to produce a taco sauce with a 635-pound standard direct materials requirement. The standard materials price is $22.40 per pound. The actual price of the tomatoes was $22.20 per pound. Prepare the journal entries to record
(1) the purchase of the tomatoes and
(2) the tomatoes entering production. Titus records standards and variances in the general ledger.