Chic Design is a manufacturer of large flower pots for urban settings. The compa

Question

Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards Requirements 1. 2. Record Elegance's direct material and direct labor journal entries. Record 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 the journal entries for the completion and sale of 2,000 flower pots, assuming Chic Design sold (on account) all of the flower pots at a sales price of $520 each. (There were no beginning or ending inventories.) Click the icon to view the standards.) Last month, pots: the company reported the following actual results for the production of 2,000 fiower 3. E (Click the icon to view related variances) Assume the company uses a standard cost accounting system

Explanation / Answer

Note: Though explanations are not required, the same have been provided for understanding of the transaction being recorded and the order in which the transactions have been recorded. Kindly omit the explanations in your submission.

Account Titles and Explanation Debit Credit 1 Raw materials inventory 126800 DM price variance 15850 Accounts payable/Cash (31700 x $4.50) 142650 (To record purchase of raw materials) 2 Work in process inventory 120000 DM quantity variance 4000 Raw materials inventory (31000 x $4) 124000 (To record raw materials used) 3 Work in process inventory 190000 DL efficiency variance 15200 DL rate variance 10800 Wages payable (10800 x $18) 194400 (To record direct labor costs incurred) 4 Variable and Fixed Manufacturing Overheads 66960 Accounts payable/Cash 66960 (To record variable manufacturing overheads incurred) 5 Variable and Fixed Manufacturing Overheads 65400 Accounts payable/Cash 65400 (To record fixed manufacturing overheads incurred) 6 Work in process inventory (10000 x $6) 60000 Variable and Fixed Manufacturing Overheads 60000 (To record variable manufacturing overheads allocated) 7 Work in process inventory 70000 Variable and Fixed Manufacturing Overheads 70000 (To record fixed manufacturing overheads allocated) 8 Variable overhead rate variance 2160 Variable overhead efficiency variance 4800 Fixed overhead budget variance 600 Fixed overhead volume variance 4000 Variable and Fixed Manufacturing Overheads 2360 (To close the manufacturing overheads account) 9 Finished goods inventory 440000 Work in process inventory 440000 (To record goods completed and transferred) 10 Accounts receivable 1040000 Sales revenue (2000 x $520) 1040000 (To record sales on account) 11 Cost of goods sold 440000 Finished goods inventory 440000 (To record the cost of the goods sold)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.