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Question 22.5: Tip Top Corp. produced 3,000 units that require six standard...

Tip Top Corp. produced 3,000 units that require six standard pounds per unit at the $4.50 standard price per pound. The company actually used 18,500 pounds in production. Journalize the entry to record the standard direct materials used in production.

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Work in Process (18,000* pounds × $4.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   81,000

Direct Materials Quantity Variance [(18,500 pounds – 18,000 pounds) × $4.50] . . . . . . .    2,250

Materials (18,500 pounds × $4.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 83,250

*3,000 units × 6 pounds per unit = 18,000 standard pounds for units produced

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