Requirement 1. Record

Ceramics Etc.'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.

Journal Entry
Date		Accounts	Debit	Credit

Now let's record the entry for the use of raw materials.

Journal Entry
Date		Accounts	Debit	Credit

Next, we can record the incurrence of direct labour.

Journal Entry
Date		Accounts	Debit	Credit

The last direct labour entry is for the use of direct labour. Record the entry.

Journal Entry
Date		Accounts	Debit	Credit

Requirement 2 . Record

Ceramics Etc.'s

journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the manufacturing overhead account.

Let's start with the entry to record the actual overhead costs incurred.

Journal Entry
Date		Accounts	Debit	Credit

Next, let's record the entry to allocate manufacturing overhead.

Journal Entry
Date		Accounts	Debit	Credit

Now record the overhead variances and close the manufacturing overhead account.

Journal Entry
Date		Accounts	Debit	Credit

Requirement 3. Record the journal entries for the completion and sale of the

71,000

bottles, assuming

Ceramics Etc.

sold (on account) all of the

71,000

bottles at a sale price of

$8.60

each (there were no beginning or endinginventories).

Start by recording the entry for the completion of

71,000

bottles.

Journal Entry
Date		Accounts	Debit	Credit

Next, record the sale of

71,000

bottles. Begin with the entry to transfer the costs of the merchandise that was sold.

Journal Entry
Date		Accounts	Debit	Credit

The last entry we must record is for the sales revenue for

71,000

bottles.

Journal Entry
Date		Accounts	Debit	Credit

Ceramics Etc. is a manufacturer of ceramic bottles. (Click the icon to view the standards.) Last month, Ceramics Etc. reported the following actual results for the production of 71,000 bottles: E: (Click the icon to view the actual results.) Requirements Use a standard cost accounting system to do the following 1. Record Ceramics Etc.'s direct materials and direct labour journal entries. 2. Record Ceramics Etc.'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 71,000 bottles, assuming Ceramics Etc. sol (on account) all of the 71,000 bottles at a sale price of $8.60 each (there were no beginning or ending inventories). E (Click the icon to view related variances.) Requirement 1. Record Ceramics Etc.'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. Journal Entry Date Accounts Debit Credit Now let's record the entry for the use of raw materials. Journal Entry Date Accounts Debit Credit i Data Table Ceramics Etc. is a manufacturer of ceramic bottles. BE (Click the icon to view the standards.) wing: labour journal entries. cturing overhead, including the entry that records the The company has these standards: Last month, Ceramics Etc. reported the following actual re (Click the icon to view the actual results.) overhead account. Direct materials (clay) 1.2 kg per bottle, at a cost of $0.42 per kg sale of the 71.000 bottles, assuming Ceramics Etc. sol le of $8.60 each (there were no beginning or ending Direct labour 1/5 hour per bottle, at a cost of $14.40 per hour ) (Click the icon to view related variances.) Static budget variable overhead $72,100 Static budget fixed overhead $29,870 Data Table X Static budget direct labour hours 10,300 hours Static budget number of bottles 55,000 Direct materials price variance Direct materials efficiency variance $ 29,820 U 8,946 U Ceramics Etc. 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. Direct labour price variance Direct labour efficiency variance 23.075 F 51,120 U Print Data Table 7,280 F Total manufacturing overhead variance Overhead flexible budget variance Production volume variance 4.030 U 11.310 F Direct materials 1.5 kg per bottle, at a cost of $0.70 per kg try Direct labour 1/4 hour per bottle, at a cost of $13.10 per hour Print Done Debit Credit Actual variable overhead $104,400 Actual fixed overhead ....... $28,900 Choose from any list or enter any number in the input fields and then continue to the next