Rocky Mountain Camping Equipment, Inc., has established the following direct-material standards for its two products. Standard...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Rocky Mountain Camping Equipment, Inc., has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 8 yards 3 yards Standard Price. $3.00 per yard $5.00 per yard During March, the company purchased 6,000 yards of tent fabric for its standard model at a cost of $19,200. The actual March production of the standard tent was 300 tents, and 2,450 yards of fabric were used. Also during March, the company purchased 3,000 yards of the same tent fabric for its deluxe backpacking tent at a cost of $14,100. The firm used 1,140 yards of the fabric during March in the production of 380 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. Rocky Mountain Camping Equipment, Inc., has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 8 yards 3 yards Standard Price. $3.00 per yard $5.00 per yard During March, the company purchased 6,000 yards of tent fabric for its standard model at a cost of $19,200. The actual March production of the standard tent was 300 tents, and 2,450 yards of fabric were used. Also during March, the company purchased 3,000 yards of the same tent fabric for its deluxe backpacking tent at a cost of $14,100. The firm used 1,140 yards of the fabric during March in the production of 380 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.
Expert Answer:
Answer rating: 100% (QA)
Requirement 1 Computation of the directmaterial purchase price variance and quantity variance for Ma... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Prepare journal entries to record its following production activities. 1. Purchased $80,000 of raw materials on credit. 2. Used $34,000 of direct materials in production. 3. Used $41,000 of indirect...
-
Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Mar. 5 Purchased 500...
-
Prepare journal entries to record the following production activities. 1. Transferred completed products with a cost of $137,000 to finished goods inventory. 2. Sold $450,000 of products on credit....
-
Everyone knows that cigarette smoking is harmful to your health. But is it also harmful to people who live or work among smokers? Discuss this issue in terms of the third-party economic externalities...
-
Presented below is information from the annual report of Todd Warner, Inc. Operating income ............ $850,000 Bond interest expense ........... 305,000 545,000 Income taxes .............. 218,000...
-
On January 1, 2013, Piranto acquires 90 percent of Slinton's outstanding shares. Financial information for these two companies for the years of 2013 and 2014 follows: Assume that a tax rate of 40...
-
Thomas Baker, president of Brundage Corporation, says he has observed that an increase in sales almost always results in an increase in net income. Therefore, he is considering recommending that the...
-
Japanese automakers have long been known for the quality of their products, and especially for the efciency of their stream-lined manufacturing and supply processes. Thus, few people could have...
-
Cash flows related to three mutually exclusive capital equipment projects are given in table below. Alternative Initial Cost Uniform annual Salvage Value $750 A $1000 $125 B $800 $120 $500 C $600...
-
FREE-CASH-FLOWS-BASED VALUATION. In Problem, we projected financial statements for Wal-Mart Stores, Inc. (Walmart) for Years +1 through +5. The data in Exhibits 13 (see pages 985987) include the...
-
Determine the suitable accounting model and the relevant financial statements for each of these Governmental Entities. a. Level Of Governmental Institution National Government. b. Accounting Model...
-
What are the mechanisms by which prokaryotes cause disease in host organisms? Discuss the role of virulence factors such as toxins, adhesins, and secretion systems in prokaryotic pathogenicity .
-
A 3 . 5 0 0 kg block is connected to a spring with a force constant of 2 0 N / m The block is pulled back to + 0 . 0 5 0 0 0 m for the amplitude. Determine the magnitude of the velocity when the...
-
The following is a list of accounts and adjusted amounts for Rollcom, Incorporated, for the fiscal year ended September 30, 2021. The accounts have normal debit or credit balances. Accounts Payable...
-
BusyBee Industries, a manufacturer of construction materials and home design goods, has begun to experiment with additive manufacturing to 3D-print customized flooring and countertop options. How...
-
Describe the various concepts used to define a species (e.g., biological, morphological, phylogenetic). How do these concepts influence taxonomic classification, and what are the implications for...
-
Logan starts an IRA (Individual Retirement Account) at the age of 34 to save for retirement. He deposits $400 each month. Upon retirement at the age of 65, his retirement savings is $519,968.68....
-
Imagine that your best friend knows you are taking a psychology course and wonders what psychology is all about. How would you define psychology for your friend? Write an essay on the discipline of...
-
In a strategy meeting, a manufacturing companys president said, If we raise the price of our product, the companys break-even point will be lower. The financial vice president responded by saying,...
-
Lamont Industries produces chemicals for the swimming pool industry. In one Joint process, 10,000 gallons of GSX are processed into 7,000 gallons of xenolite and 3,000 gallons of banolide. The cost...
-
What is meant by the term contribution margin per unit of scarce resource?
-
George Edmonds, the new accountant for Zigler Company, has recommended the preparation of income statements reporting contribution margin rather than statements reporting gross profit. He states that...
-
Charts and graphs are often used to help people understand numbers. To be helpful, charts and graphs must be clearly labeled. Required: 1. Use the data from Application Problem 15-4, Instruction 1,...
-
Denise Young, an accountant for Chiles Corporation, has been asked to prepare an income statement that reports contribution margin. Miss Young has asked you to prepare an analysis of three months...
Study smarter with the SolutionInn App