The Butrico Manufacturing Corporation uses a standard cost system which records raw materials at actual cost, records materials price variance at the time that raw materials are issued to work-in-process, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the direct material balances in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated based on the direct labor balances in the appropriate accounts. The following information is available for Butrico for the year ended December 31, \(20 \times 5\).

There were no beginning inventories and no ending work-in-process inventory. Manufacturing overhead is applied at \(80 \%\) of standard direct labor.

(a) Determine the ending balances of raw materials inventory, finished goods inventory, and cost of goods sold after proration.

(b) How would the proration procedures have differed if:
(1) Raw materials inventories had been carried at standard costs?
(2) There had been an ending balance in the work-in-process inventory account?
(3) There had been beginning balances in these accounts?

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Raw materials inventory at December 31, 20X5 Finished goods inventory at December 31, 20X5: Direct material........ Direct labor........... Applied manufacturing overhead. ........$ 65,000 87,000 ........... 130,500 104,400 .... 348,000 Cost of goods sold for the year ended December 31, 20X5: Direct material...... Direct labor.......... Applied manufacturing overhead.. Direct material price variance (unfavorable) Direct material usage variance (favorable).. Direct labor rate variance (unfavorable) Direct labor efficiency variance (favorable). Manufacturing overhead incurred 739,500 ..... 591,600 10,000 15,000 20,000 5,000 ......690.000