Elegance is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) Last month, the company reported the following actual results for the production of 1.700 flower pots: (Click the icon to view the actual results.) (Click the icon to view related variances.) Assume the company uses a standard cost accounting system. Requirements 1. Record Watermate's direct material and direct labor journal entries 2. Record Watermate's journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Variable and Fixed Manufacturing Overhead account 3. Record the journal entries for the completion and sale of 1,700 flower pots, assuming Elegance sold (on account) all of the flower pots at a sales price of $480 each. (There were no beginning or ending inventories.) Requirement 1. Record Watermate's direct material and direct labor journal entries. (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviations used: DM = Direct materials, DL = Direct labor) Let's start by recording the entry for the purchase of raw materials. Journal Entry Date Accounts Debit Credit Data Table from VE D Direct materials (resin), 14 pounds per pot at a cost of $4.00 per pound .3.0 hours at a cost of $23.00 per hour Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate $4.00 per direct labor hour $63,300 $13.00 per direct labor hour (DLH) Print Done Data Table Direct materials Direct labor Purchased 24,880 pounds at a cost of $4.30 per pound; used 24,480 pounds to produce 1,700 pots Worked 3.5 hours per flower pot (5,950 total DLH) at a cost of $21.00 per hour $4.30 per direct labor hour for total actual variable manufacturing overhead of $25,585 $62,800 Actual variable manufacturing overhead Actual fixed manufacturing overhead Standard fixed manufacturing overhead allocated based on actual production $66,300 Print Done yetio sustom Data Table Excl Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance $ 7,464 U $2,720 U $11,900 F $19,550 U $1,785 U $3,400 U $500 F $3,000 F View site informat Print Done Requirement 1. Record Elegance's direct material and direct labor journal entries. (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviations used: DM = Direct materials, DL = Direct labor) Let's start by recording the entry for the purchase of raw materials. Journal Entry Date Accounts Debit Credit Raw Materials Inventory 118,400 DM Price Variance 5,920 Accounts Payable 124,320 Now let's record the entry for the use of raw materials. Journal Entry Date Accounts Credit Work in Process Inventory DM Quantity Variance Raw Materials Inventory Debit 112,000 3,200 115,200 Next we can record the direct labor costs. (Record both direct labor variances by preparing a single compound entry.) Journal Entry Date Accounts Debit Credit Work in Process Inventory 80,000 DL Efficiency Variance 20,000 DL Rate Variance 15,000 Wages Payable 85,000 Requirement 2. RecordRecord Elegance's journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Variable and Fixed Manufacturing Overhead account. (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviations used: DM = Direct materials, DL = Direct labor) Let's start with the entry to record the actual overhead costs incurred. (Record both fixed and variable overhead costs in one entry.) Journal Entry Accounts Debit Credit Variable Manufacturing Overhead 11,500 Fixed Manufacturing Overhead 25,500 Various accounts 37,000 Date Debit Credit Next let's record the entry to allocate manufacturing overhead. Journal Entry Date Accounts Work in Process Inventory Variable Manufacturing Overhead Fixed Manufacturing Overhead 36,000 8,000 28,000 Now record the variable overhead variances and close the variable Manufacturing Overhead account. Journal Entry Date Accounts Debit Credit Variable Overhead Rate Variance 1,500 Variable Overhead Efficiency Variance 2,000 Variable Manufacturing Overhead 3,500 Credit Now record the fixed overhead variances and close the Fixed Manufacturing Overhead account. Journal Entry Date Accounts Debit Fixed Manufacturing Overhead 2,500 Fixed Overhead Budget Variance Fixed Overhead Volume Variance 500 2,000 Requirement 3. Record the journal entries for the completion and sale of 2,000 flower pots, assuming Earthern Ware sold (on account) all of the flower pots at a sales price of $530 each. (There were no beginning or ending inventories.) (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviations used: DM = Direct materials, DL = Direct labor) Start by recording the entry for the completion of 2,000 flower pots. Journal Entry Date Accounts Debit Credit Finished Goods Inventory 228,000 Work in Process Inventory 228,000 Next record the sale of 2,000 flower pots. Begin with the entry to transfer the costs of the merchandise that was sold. Journal Entry Accounts Cost of Goods Sold 228,000 Finished Goods Inventory 228,000 Date Debit Credit Record the sales revenue for 2,000 flower pots. Journal Entry Date Accounts Accounts Receivable Sales Revenue Debit Credit 1,060,000 1,060,000