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PR 10-46 (Algo) Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Incorporated, has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 27 yards 5 yards Standard Price $ 12.50 per yard $ 8.80 per yard During March, the company purchased 4,100 yards of tent fabric for its standard model at a cost of $53,710. The actual March production of the standard tent was 110 tents, and 3,100 yards of fabric were used. Also during March, the company purchased 1,100 yards of the same tent fabric for its deluxe backpacking tent at a cost of $9,570. The firm used 950 yards of the fabric during March in the production of 190 deluxe tents. Required: 1. Compute the direct-material purchase price variance and quantity variance for March. 2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.

PR 10-46 (Algo) Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Incorporated, has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 27 yards 5 yards Standard Price $ 12.50 per yard $ 8.80 per yard During March, the company purchased 4,100 yards of tent fabric for its standard model at a cost of $53,710. The actual March production of the standard tent was 110 tents, and 3,100 yards of fabric were used. Also during March, the company purchased 1,100 yards of the same tent fabric for its deluxe backpacking tent at a cost of $9,570. The firm used 950 yards of the fabric during March in the production of 190 deluxe tents. Required: 1. Compute the direct-material purchase price variance and quantity variance for March. 2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 19E
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PR 10-46 (Algo) Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Incorporated, has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 27 yards 5 yards Standard Price $ 12.50 per yard $ 8.80 per yard During March, the company purchased 4,100 yards of tent fabric for its standard model at a cost of $53,710. The actual March production of the standard tent was 110 tents, and 3,100 yards of fabric were used. Also during March, the company purchased 1,100 yards of the same tent fabric for its deluxe backpacking tent at a cost of $9,570. The firm used 950 yards of the fabric during March in the production of 190 deluxe tents. Required: 1. Compute the direct-material purchase price variance and quantity variance for March. 2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.
Transcribed Image Text:PR 10-46 (Algo) Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Incorporated, has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 27 yards 5 yards Standard Price $ 12.50 per yard $ 8.80 per yard During March, the company purchased 4,100 yards of tent fabric for its standard model at a cost of $53,710. The actual March production of the standard tent was 110 tents, and 3,100 yards of fabric were used. Also during March, the company purchased 1,100 yards of the same tent fabric for its deluxe backpacking tent at a cost of $9,570. The firm used 950 yards of the fabric during March in the production of 190 deluxe tents. Required: 1. Compute the direct-material purchase price variance and quantity variance for March. 2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.
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