7. Price, mix, and yield variances, journal entries. Medicope Inc. produces an antiseptic powder which is sold in bulk to institutions such as schools and hospitals. The product's mixture is tested at intervals during the production process. Materials are added as needed to give the mixture the desired drying and medicating properties. The standard mixture with standard prices for a 100-1b. batch is as follows: 10 lbs. of Hexachlorophene @ $.45 10 lbs. of Para-chlor-meta-xylenol @ $.30 30 lbs. of Bentonite @ $.08 20 lbs. of Kaolin @ $.10 50 lbs. of Talc @ $.05 During January, the following materials were purchased: 1,500 lbs. of Hexachlorophene @ $.47 1,100 lbs. of Para-chlor-meta-xylenol @ $.33 4,000 lbs. of Bentonite @ $.07 2,500 lbs. of Kaolin @ $.11 6.000 lbs. of Talc @ $.04 The materials price variance is recorded when materials are purchased. Production for the month consisted of 10,700 lbs. of finished product. There were no beginning or ending inventories of work in process. The following actual materials quantities were put into production: 1.050 lbs. of Hexachlorophene 1,125 lbs. of Para-chlor-meta-xylenol 3,080 lbs. of Bentonite 2,200 lbs. of Kaolin 5,300 lbs. of Talc Required: (1) Calculate materials variances (price, mix, and yield). (2) Prepare the journal entries for (a) purchase, (b) usage, (c) completion of materials, and (d) disposition of variances, assuming all completed units were sold