Titus Company purchased 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 Titus records standard costs and variances in its accounts Required a Prepare the journal entry to record the purchase of the tomatoes b Prepare the journal entry to record the tomatoes used in production Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for spaces or journal explanations Every line on a journal page is used for debit or credit entries Do not add explanations or skip a line between journal entries CNOW journals will automatically indent a credit entry when a credit amount is entered Chart of Accounts CHART OF ACCOUNTS Titus Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 130 Materials 133 Work in Process 136 Factory Overhead 138 Finished Goods 141 Supplies 142 Prepaid Insurance 181 Land 190 Office Equipment 191 Accumulated Depreciation Office Equipment 192 Machinery 193 Accumulated Depreciation Machinery 194 Factory 195 Accumulated Depreciation Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Direct Materials Quantity Variance 521 Direct Materials Price Variance 522 Direct Labor Time Variance 523 Direct Labor Rate Variance 530 Wages Expense 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 560 Depreciation Expense Office Equipment 561 Depreciation Expense Machinery 562 Depreciation Expense Factory 590 Miscellaneous Expense 710 Interest Expense General Journal a Prepare the journal entry to record the purchase of the tomatoes on December 31 Titus records standard costs and variances in its accounts Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for spaces or journal explanations Every line on a journal page is used for debit or credit entries Do not add explanations or skip a line between journal entries CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 1 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 b Prepare the journal entry to record the tomatoes used in production on December 31 Titus records standard costs and variances in its accounts Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for spaces or journal explanations Every line on a journal page is used for debit or credit entries Do not add explanations or skip a line between journal entries CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 1 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3

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Titus Company purchased and used 650 pounds of tomatoes (direct materials) to produce a taco sauce with a 635 pound standard direct materials requirement. The

Titus Company purchased 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.

Titus records standard costs and variances in its accounts.

Required:

a.	Prepare the journal entry to record the purchase of the tomatoes.*
b.	Prepare the journal entry to record the tomatoes used in production.*
	*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Chart of Accounts

CHART OF ACCOUNTS

Titus Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
130	Materials
133	Work in Process
136	Factory Overhead
138	Finished Goods
141	Supplies
142	Prepaid Insurance
181	Land
190	Office Equipment
191	Accumulated Depreciation-Office Equipment
192	Machinery
193	Accumulated Depreciation-Machinery
194	Factory
195	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Direct Materials Quantity Variance
521	Direct Materials Price Variance
522	Direct Labor Time Variance
523	Direct Labor Rate Variance
530	Wages Expense
532	Insurance Expense
533	Utilities Expense
534	Supplies Expense
560	Depreciation Expense-Office Equipment
561	Depreciation Expense-Machinery
562	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest Expense

General Journal

a. Prepare the journal entry to record the purchase of the tomatoes on December 31. Titus records standard costs and variances in its accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
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b. Prepare the journal entry to record the tomatoes used in production on December 31. Titus records standard costs and variances in its accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 1

JOURNAL