Refer to the DaisyMate data set. Assume the company uses a standard cost accounting system.
In Daisy Mate Data set
Direct materials (resin) .......................................... 5 pounds per pot at a cost of $3.00 per pound
Direct labor ......................................................................... 2.0 hours at a cost of $18.00 per hour
Standard variable manufacturing overhead rate ................................ $10.00 per direct labor hour
Budgeted fixed manufacturing overhead ........................................................................... $8,800
Standard fixed MOH rate ....................................................... $2.50 per direct labor hour (DLH)
Direct materials ..................................... Purchased 10,800 pounds at a cost of $4.00 per pound;
Used 10,300 pounds to produce 2,000 pots
Direct labor............... Worked 2.1 hours per unit (4,200 total DLH) at a cost of $18.60 per hour
Actual variable manufacturing overhead............................. $10.50 per direct labor hour for
Total actual variable manufacturing overhead of $44,100
Actual fixed manufacturing overhead .............................................................................. $10,200
Standard fixed manufacturing overhead allocated based on actual production .............. $10,000
Requirements
1. Record DaisyMate's direct materials and direct labor journal entries.
2. Record DaisyMate's 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 2,000 flower pots, assuming DaisyMate's sold (on account) the entire flower pots at a sales price of $240 each (there were no beginning or ending inventories).