Check xercise 17-22 (Static) Prorating Direct Material Cost Variances (LO 17-1) reviewing activity for July, the controller of Mathis, Inc., collected the following data concerning direct materials. Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used 103,000 units $1,642,800 1,554,000 14 1,405,950 Assume that Mathis Company had no beginning finished goods inventory and only produced one product. Mathis sold 90,640 units during the period. Required: a. Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances. b. Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Required A Required B Prev 1 of 5 !!! Next > Saved Help Save & Exit Check Complete this question by entering your answers in the tabs below. Required A Required B Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet New lidhsaction list Journal entry worksheet Record the cost of the direct materials purchased and the materials price variance. Note: Enter debits before credits. Event General Journal Debit Credit Record entry View general journal Clear entry View transaction list Journal entry worksheet | ABC Record the closure of direct labor cost variances to Cost of Goods Sold and Finished Goods Inventory. Note: Enter debits before credits. General Journal Debit Credit Event 3 View general journal Record entry Clear entry