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. During September, Rocky Mountain purchased and used direct materials costing $48, 796.80, consisting of 2, 760 square yards of material used in the production of 905 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.