During June, Cisco Company Produced 15,000 Chainsaw Blades

question 166

Short Answer

During June, Cisco Company produced 15,000 chainsaw blades. The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $5 per pound. The actual purchase price was $6.25 per pound. Cisco determined that it had a favorable materials usage variance of $2,500 for June. What is the journal entry to record the issuance and usage of materials?

---

Definitions:

Type O

A blood type in the ABO blood group system characterized by the absence of A and B antigens on red cells and the presence of anti-A and anti-B antibodies in the plasma.

Anterior Pituitary

The front portion of the pituitary gland, which secretes hormones regulating a variety of physiological processes including stress, growth, and reproduction.

Embryonic Origin

Refers to the initial stage of development in multicellular organisms, from which all tissues and organs develop.

Epithelium

One of the four primary tissue types. Nipple refers to the tiny capillary-containing connective tissue in the lips, which is where the term was first used. The use of the term was later expanded to include all covering and lining surfaces of the body.