Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Debit Credit Direct Materials Price Variance $ 14,050 Direct Materials Usage Variance $ 1,240 Direct Labor Rate Variance 900 Direct Labor Efficiency Variance $ 12,700 Unadjusted Cost of Goods Sold equals $1,500,000, unadjusted Work in Process equals $326,000, and unadjusted Finished Goods equals $240,000. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to the Cost of Goods Sold. 2. What is the adjusted balance in the Cost of Goods Sold after closing out the variances?

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Debit Credit Direct Materials Price Variance $ 14,050 Direct Materials Usage Variance $ 1,240 Direct Labor Rate Variance 900 Direct Labor Efficiency Variance $ 12,700 Unadjusted Cost of Goods Sold equals $1,500,000, unadjusted Work in Process equals $326,000, and unadjusted Finished Goods equals $240,000. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to the Cost of Goods Sold. 2. What is the adjusted balance in the Cost of Goods Sold after closing out the variances?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 5CE: Yohan Company has the following balances in its direct materials and direct labor variance accounts...

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