Precision Manufacturing Inc. maintains a standard cost system and all inventories, including direct materials, are carried on the books at standard cost. The company produces only one product. In July, the company produced 1,050 units of the product. The company has established a standard of 4 pounds of material used per unit of product, at a price of $11.75 per pound of direct material. During July the company purchased, on account, 4,800 pounds of direct material at a cost of $54,000. During July the direct material inventory increased by 500 pounds. Required: 1. Calculate the direct materials purchase price variance for the period. Provide your answer below and state whether it is Favorable or Unfavorable. You can use the template we did in class to solve or use the formula method. Show your work.) Answer: 2. Calculate the direct materials usage variance for the period. Provide your answer below and state whether it is Favorable or Unfavorable. (You can use the template we did in class to solve or use the formula method. Show your work.) Answer: 3. Prepare the journal entry, with explanation, to record the purchase of the direct materials during July. GENERAL JOURNAL Date Account Titles and Explanation Debit Credit 4. Prepare the journal entry, with explanation, to record the cost of the direct materials issued to (used in production during July 4. Prepare the journal entry, with explanation, to record the cost of the direct materials issued to (used in production during July. GENERAL JOURNAL Date Account Titles and Explanation Debit Credit