Problem 10-46 Direct - Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Inc., has established the following direct - material standards for its two products. Standard Quantity Standard Price Standard camping tent 27 yards $ 12.50 per yard Deluxe backpacking tent 22 yards $ 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 4, 180 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.

Problem 10-46 Direct - Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Inc., has established the following direct - material standards for its two products. Standard Quantity Standard Price Standard camping tent 27 yards $ 12.50 per yard Deluxe backpacking tent 22 yards $ 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 4, 180 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.

Name: 6 Problem 10-46 Direct - Material Variances; Journal Entries (Appendix
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Description: 6 Problem 10-46 Direct - Material Variances; Journal Entries (Appendix) (LO10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Inc., has establishedthe following direct - material standards for its two products. Standard QuantityStandard Price Standa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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