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Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard specifications for one unit of Teragram include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Teragram. The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of $120. Required: a. Based on these data, calculate how many pounds of material were used in the production of Teragram during November.
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Prepare the journal entry on Peach Company's books to record the exchange of stock. Prepare a consolidated balance sheet at the date of acquisition.
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