Overhead Variances and Their DisposalWarner Company has the following data for the past year:Actual overhead$828,000Applied overhead: Work-in-process inventory$172,000 Finished goods inventory344,000 Cost of goods sold344,000 Total$860,000 3. What if the variance is of the opposite sign calculated in Requirement 1? Provide the appropriate adjusting journal entries for Requirements 1 and2. For a compound transaction, if an amount box does not require an entry, leave it blank.Variance immaterialVariance material 2. Assume the variance calculated is material. After prorating, close the variances to the appropriate accounts. If an amount box does not require an entry, leave it blank.Overhead Control32,000Finished Goods InventoryFeedbackCheck My WorkIncorrectAssume the variance calculated is material. After prorating, provide the final ending balances of these accounts.UnadjustedProrated OverappliedAdjustedBalanceOverheadBalanceWork-in-Process Inventory$172,000Finished Goods Inventory$344,000$Cost of Goods Sold$344,000$4

Solution:- 2)Calculation of the the variance calculated is material. After prorating, close the…

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FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Actual overhead	$828,000
Applied overhead:
Work-in-process inventory	$172,000
Finished goods inventory	344,000
Cost of goods sold	344,000
Total	$860,000

Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead $828,000 Applied overhead: Work-in-process inventory $172,000 Finished goods inventory 344,000 Cost of goods sold 344,000 Total $860,000