Raw Material Inventory $190,320 Work in Process Inventory 228,384 Finished Goods Inventory 342,576 Cost of Goods Sold 3,045,120 Material Price Variance 37,700 Material Quantity Variance $57,018 Labor Rate Variance 5,720 Labor Efficiency Variance. 22,828 Assume that, taken together, the variances are believed to be significant. Prepare the journal entries to close the variances at year-end. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Note: Do not round allocation percentages. Note: Round your final answers to the nearest whole dollar. Include any rounding differences to balance the t-account in Cost of Goods Sold. Account Cost of Goods Sold Finished Goods Inventory Raw Material Inventory Work in Process Inventory Material Price Variance To dispose of the material price variance Labor Rate Variance Material Quantity Variance Cost of Goods Sold Finished Goods Inventory Labor Efficiency Variance Work in Process Inventory ***** ****** To dispose of the remaining material and labor variances Debit Credit 30,160 ✔ 0 ✓ 3,393 ✔ 0 ✓ 1,885 0 2,262 0 0 ✓ 37,700 ✓ 5,720✔ 57,018 ✓ 0 ✓ 0 ✓ 0✓ 0 ✓ xx 0 ✓ 22,828✔ 0 ✓ 0 x

Raw Material Inventory $190,320 Work in Process Inventory 228,384 Finished Goods Inventory 342,576 Cost of Goods Sold 3,045,120 Material Price Variance 37,700 Material Quantity Variance $57,018 Labor Rate Variance 5,720 Labor Efficiency Variance. 22,828 Assume that, taken together, the variances are believed to be significant. Prepare the journal entries to close the variances at year-end. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Note: Do not round allocation percentages. Note: Round your final answers to the nearest whole dollar. Include any rounding differences to balance the t-account in Cost of Goods Sold. Account Cost of Goods Sold Finished Goods Inventory Raw Material Inventory Work in Process Inventory Material Price Variance To dispose of the material price variance Labor Rate Variance Material Quantity Variance Cost of Goods Sold Finished Goods Inventory Labor Efficiency Variance Work in Process Inventory * ** To dispose of the remaining material and labor variances Debit Credit 30,160 ✔ 0 ✓ 3,393 ✔ 0 ✓ 1,885 0 2,262 0 0 ✓ 37,700 ✓ 5,720✔ 57,018 ✓ 0 ✓ 0 ✓ 0✓ 0 ✓ xx 0 ✓ 22,828✔ 0 ✓ 0 x

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 12E: Using variance analysis and interpretation Last year, Endicott Corp. adopted a standard cost system....

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