Refer to the CityScapes data set. Assume the company uses a standard cost accounting system.

Requirements
1. Record CityScapes’ direct materials and direct labor journal entries.

2. Record CityScapes’ journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Manufacturing Overhead account.

3. Record the journal entries for the completion and sale of the 1,900 flower pots, assuming CityScapes sold (on account) all of the flower pots at a sales price of $ 450 each ( there were no beginning or ending inventories).

CityScapes data set.

CityScapes is a manufacturer of large flower pots for urban settings. The company has these standards:

Direct materials (resin)....................................... 15 pounds per pot at a cost of $ 5.00 per pound

Direct labor.............................................................. 2.0 hours at a cost of $ 13.00 per hour

Standard variable manufacturing overhead rate.................................... $ 6.00 per direct labor hour

Budgeted fixed manufacturing overhead................ $ 23,600

Standard fixed MOH rate......................................... $ 7.00 per direct labor hour (DLH)

CityScapes allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, CityScapes reported the following actual results for the production of 1,900 flower pots:

Direct materials............................................. Purchased 30,230 pounds at a cost of $ 5.20 per pound; used 29,830 pounds to ­produce 1,900 pots

Direct labor................................................... Worked 2.4 hours per unit (4,560 total DLH) at a

cost of $ 12.00 per hour

Actual variable manufacturing overhead...... $ 6.20 per direct labor hour for total actual variable

manufacturing overhead of $ 28,272

Actual fixed manufacturing overhead........... $ 23,400

Standard fixed manufacturing overhead allocated based on actual production.......... $ 26,600