(Appendix) Record journal entries in a standard costing system (Learning Objective 6)

Refer to the Watermate Data Set on page 649. Use a standard cost accounting system to:

1. Record Watermate’s direct materials 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 Manufacturing Overhead account.

3. Record the journal entries for the completion and sale of the 70,000 bottles, assuming Watermate sold (on account) all of the 70,000 bottles at a sales price of $8 each (there were no beginning or ending inventories).