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

Requirements:

1. Record Elegant Designs’ direct materials and direct labor journal entries.
2. Record Elegant Designs’ journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Variable and Fixed Manufacturing Overhead accounts.
3. Record the journal entries for the completion and sale of the 1,600 flowerpots, assuming Elegant Designs sold (on account) all of the flowerpots at a sales price of \($530\) each (there were no beginning or ending inventories).

Data:-

Elegant Designs is a manufacturer of large flowerpots for urban settings. The company has these standards:

Elegant Designs allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, Elegant Designs reported the following actual results for the production of 1,600 flowerpots:

Transcribed Image Text:

Direct materials (resin)... Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead................ Standard fixed MOH rate 10 pounds per pot at a cost of $3.00 per pound 5.0 hours at a cost of $19.00 per hour $3.00 per direct labor hour $94,000 $12.00 per direct labor hour (DLH)