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. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. ». Assume Sheffer prorates all variances to the appropriate accounts. Prepare the entries Sheffer would make to record and close out he variances.

. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. ». Assume Sheffer prorates all variances to the appropriate accounts. Prepare the entries Sheffer would make to record and close out he variances.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Record entry → Show Transcribed Text View transaction list Journal entry worksheet D B < A Note: Enter debits before credits. Event 2 Record entry Show Transcribed Text C View transaction list Record the cost of the direct materials purchased and the materials price variance. Clear entry General Journal Event Journal entry worksheet <A B с Note: Enter debits before credits. < Required A Clear entry C General Journal Debit < Required A C Credit Debit View general journal Required B > Record the closure of direct material cost variances to Cost of Goods Sold. Credit View general journal Required B > > >
Transcribed Image Text:Record entry → Show Transcribed Text View transaction list Journal entry worksheet D B < A Note: Enter debits before credits. Event 2 Record entry Show Transcribed Text C View transaction list Record the cost of the direct materials purchased and the materials price variance. Clear entry General Journal Event Journal entry worksheet <A B с Note: Enter debits before credits. < Required A Clear entry C General Journal Debit < Required A C Credit Debit View general journal Required B > Record the closure of direct material cost variances to Cost of Goods Sold. Credit View general journal Required B > > >
Exercise 17-25 (Algo) Prorating Direct Materials Cost Variances (LO 17-1) The cost analyst for Sheffer Systems collected the following data concerning direct materials: Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used 38,800 units $ 719,100 725,600 Required A Required B 17 675, 200 Assume that Sheffer Systems had no beginning finished goods or direct materials inventory and only produced one product. Sheffer sold 29,876 units during the period. Required: a. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. b. Assume Sheffer prorates all variances to the appropriate accounts. Prepare the entries Sheffer would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Transcribed Image Text:Exercise 17-25 (Algo) Prorating Direct Materials Cost Variances (LO 17-1) The cost analyst for Sheffer Systems collected the following data concerning direct materials: Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used 38,800 units $ 719,100 725,600 Required A Required B 17 675, 200 Assume that Sheffer Systems had no beginning finished goods or direct materials inventory and only produced one product. Sheffer sold 29,876 units during the period. Required: a. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. b. Assume Sheffer prorates all variances to the appropriate accounts. Prepare the entries Sheffer would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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