Aa Aa E 7. Recording journal entries for direct materials variances Rocky Mountain outdoors produces backpacks for a variety of purposes. Rocky Mountain's best-selling product is the Outbacker model. The following table summarizes the standard costs for the Outbacker. Standard Quantity Standard Standard Cost Manufacturing Costs Price per Unit per Unit $43.44 Direct materials $18.10 per sq. yd. 2.4 sq. yd. $9.50 per hr. Direct labor 2.2 hrs. 20.90 $5.10 per hr. Factory overhead 2.2 hrs. 11.22 $75.56 Total standard cost per backpack During May, Rocky Mountain purchased and used direct materials costing $40,739.20, consisting of 2,320 square yards of material used in the production of 885 Outbacker backpacks. Prepare the journal entry that Rocky Mountain Outdoors should record for the purchase of the direct materials, assuming they are purchased on account. Rocky Mountain records direct materials price variances when materials are purchased. Use Smart Entry when selection lists are not available. JOURNAL Post. Description Ref. Debit Credit May 23 Not sure about the account title? Click here to view the chart of accounts. Prepare the journal entry that Rocky Mountain Outdoors should record for the use of the direct materials. Rocky Mountain records direct materials quantity variances as materials are entered into production. Use Smart Entry when selection lists are not available