Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance $180,000 132,000 200,000 126,000 10,000 F 4,000 F Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.

Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance $180,000 132,000 200,000 126,000 10,000 F 4,000 F Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.

Name: Parkeville Company manufactures a single product and started the year
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Description: Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for theperiod just ended include the following:Actual fixed manufacturing overheadActual variable manufacturing overheadApp

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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