ples its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor (a) Throughout the year, Tamarisk used 27,900 square yards of fabric in the process of making 3,000 tents. The company had originally planned to produce and sell 2,800 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 30,000 square yards of canvas at $6.10 per square yard. Tamarisk's DL cost totaled $51,840 for the 2,880 hours that were actually used. Your answer is correct. Price variance 9 square yards per unit 1 DL hours per unit Determine Tamarisk's DM and DL price and efficiency variances; specify the amount and sign for all. Efficiency variance $ $ @ $6/square yard @$17/DL hour 3000 5400 DM Unfavorable Unfavorable $ 2880 2040 DL Unfavoral Favorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tamarisk Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and
DL usage and price expectations.
Direct materials
Direct labor
(a)
Throughout the year. Tamarisk used 27.900 square yards of fabric in the process of making 3,000 tents. The company had originally
planned to produce and sell 2,800 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 30,000 square
yards of canvas at $6.10 per square yard. Tamarisk's DL cost totaled $51,840 for the 2,880 hours that were actually used.
Your answer is correct.
9 square yards per unit
1 DL hours per unit
Price
variance
Determine Tamarisk's DM and DL price and efficiency variances; specify the amount and sign for all.
Efficiency
variance
$
eTextbook and Media
@ $6/square yard
@$17/DL hour
3000
5400
DM
Unfavorable
Unfavorable
$
$
2880
2040
DL
Unfavorab
Favorable
Transcribed Image Text:Tamarisk Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor (a) Throughout the year. Tamarisk used 27.900 square yards of fabric in the process of making 3,000 tents. The company had originally planned to produce and sell 2,800 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 30,000 square yards of canvas at $6.10 per square yard. Tamarisk's DL cost totaled $51,840 for the 2,880 hours that were actually used. Your answer is correct. 9 square yards per unit 1 DL hours per unit Price variance Determine Tamarisk's DM and DL price and efficiency variances; specify the amount and sign for all. Efficiency variance $ eTextbook and Media @ $6/square yard @$17/DL hour 3000 5400 DM Unfavorable Unfavorable $ $ 2880 2040 DL Unfavorab Favorable
Record the journal entries to accompany these three transactions: (1) the purchase of DM on account, (2) the usage of DM, and (3)
DL cost incurred (accrued). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry
is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
No. Account Titles and Explanation
(1)
(2)
Debit
Credit
Transcribed Image Text:Record the journal entries to accompany these three transactions: (1) the purchase of DM on account, (2) the usage of DM, and (3) DL cost incurred (accrued). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (1) (2) Debit Credit
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