FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.
b.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Answer is not complete.
Compute the direct-material purchase price variance and quantity variance for March. (Do not round your intermediate
calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for
no effect (i.e., zero variance).)
Direct-material purchase price variance
Direct-material quantity variance
$
1,580
$
1,625
< Required 1
Unfavorable
Unfavorable
Required 2 >
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Transcribed Image Text: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. b. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Answer is not complete. Compute the direct-material purchase price variance and quantity variance for March. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).) Direct-material purchase price variance Direct-material quantity variance $ 1,580 $ 1,625 < Required 1 Unfavorable Unfavorable Required 2 >
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. Required: Compute the direct - material purchase price variance and quantity variance for
March. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March. Answer is not complete. Complete
this question by entering your answers in the tabs below. Compute the direct - material purchase price variance and quantity variance for March. (Do not
round your intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i
.e., zero variance).)
expand button
Transcribed Image Text: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. Required: Compute the direct - material purchase price variance and quantity variance for March. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March. Answer is not complete. Complete this question by entering your answers in the tabs below. Compute the direct - material purchase price variance and quantity variance for March. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i .e., zero variance).)
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