Earthern Ware is a manufacturer of ceramic bottles. :: (Click the icon to view the standards.) Last month, Earthern Ware reported the following actual results for the production of 70,000 bottles: E: (Click the icon to view the actual results.) Requirements Use a standard cost accounting system to do the following: 1. Record Earthern Ware's direct materials and direct labour journal entries. 2. Record Earthern Ware'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 Earthern Ware sold on account) all of the 70,000 bottles at a sale price of $8.70 each. (There were no beginning or ending inventories.) :: (Click the icon to view related variances.) .... Requirement 1. Record Earthern Ware's direct materials and direct labour journal entries. (Record debits first, then credits. Explanations are not required Let's start by recording the entry for the purchase of raw materials. Data table Date Accounts Debit Credit Direct materials.. Direct labour 1.15 kg per bottle, at a cost of $0.50 per kg 1/4 hour per bottle, at a cost of $13.10 per hour $ 104,900 $28,500 Actual variable overhead Actual fixed overhead Data table Data table The company has these standards: $ 6.440 U 4.410 U Direct materials price variance Direct materials efficiency variance Direct labour price variance Direct labour efficiency variance 26.250 F 51,100 U Direct materials (clay). 1 kg per bottle, at a cost of $0.42 per kg Direct labour. 1/5 hour per bottle, at a cost of $14.60 per hour Static budget variable overhead $71,400 Static budget fixed overhead $29,580 Static budget direct labour hours 10,200 hours Static budget number of bottles .......51,000 Earthern Ware allocates manufacturing overhead to production based on standard direct labour hours. The standard predetermined variable manufacturing overhead rate is $7.00, and the standard predetermined fixed manufacturing overhead rate is $2.90. Total manufacturing overhead variance Overhead flexible budget variance Production volume variance 5,200 F 5.820 U 11,020 F Print Done Print Done