Refer to the Watermate Data Set above. Use a standard cost accounting system to do the following:

Requirements
1. Record Watermate€™s direct materials and direct labour journal entries.
2. Record Watermate€™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 70,000 bottles, assuming Watermate sold (on account) all of the 70,000 bottles at a sales price of $8 each (there were no beginning or ending inventories).

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Watermate is a manufacturer of ceramic bottles. The company has these standards: Direct materials (clay Direct labour Static budget variable overhead Static budget fixed overhead Static budget direct labour hours Static budget number of bottles Watermate allocates manufacturing overhead to production based on standard direct labour hours Last month, Watermate reported the following actual results for the production of 70,000 bottles 1 kg per bottle, at a cost of $0.40 per kg 1/5 hour per bottle, at a cost of $14 per hour $70,000 $30,000 10,000 hours ....50,000 Direct labour Actual variable overhead Actual fixed overhead.... 1.1 kg per bottle, at a cost of $0.50 per kg 1/4 hour per bottle, at a cost of $13 per hour $104,000 28,000