Question

Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs are incurred. Journalize the entries to record the following transactions: a. Purchased 2,450 units of copper tubing on account at $52.00 per unit. The standard price is $48.50 per unit. For a compound transaction, if an amount box does not require an entry, leave it blank. a. b. Used 1,900 units of copper tubing in the process of manufacturing 200 air conditioners. Ten units of copper tubing are required, at standard, to produce one air conditioner. For a compound transaction, if an amount box does not require an entry, leave it blank. b.

Answer 1

Answer: Please see explanation column for answer

Explanation:

A) Journal for enties to record  Purchased 2,450 units of copper tubing on account at $52.00 per unit

  Materials = 2450units x48.50 = $118,825

Direct materials Quantity Variance=2450x3.50($52-$48.50)=  $8,575          

Accounts payable =  2450x $52    =$127,400        

Account                                        Debit                             Credit

Materials                                 $118, 825                                        

Direct \materials quantity Variance   $8,575                                                                

Accounts payable                                                          $127,400  

b) Journal of Entres to record Used 1,900 units of copper tubing in the process of manufacturing 200 air conditioners. Ten units of copper tubing are required, at standard, to produce one air conditioner.

Work in progress   =   200x10x$48.5  = $97,000      

Direct \materials quantity Variance (2000-1900 units )x48.5                                = $ 4845      

 Materials=  1900x$48.5 =$92,150                                                                                              

Account                                          Debit                             Credit

Work in progress                     $97,000                                            

Direct \materials quantity Variance                                   $4845                                                                                                                              

Materials                                                                            `$92,150