Chapter 11, Problem 11.31AE

Make journal entries in a standard costing system (Learning Objective 7)

Refer to the Country Designs data set. Assume the company uses a standard cost accounting system.

Requirements

1. 1. Record Country Designs’ direct material and direct labor journal entries.
2. 2. Record Country Designs’ journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Variable and Fixed Manufacturing Overhead accounts.
3. 3. Record the journal entries for the completion and sale of the 1,300 flower pots, assuming Country Designs sold (on account) all of the flower pots at a sales price of $500 each. (There were no beginning or ending inventories.)