Exercise $17-25($Algo$)$ Prorating Direct Materials Cost Variances $($LO $17-1)$

$10$

points

The cost analyst for Sheffer Systems collected the following data concernirig direct materials:

Strow

$\backslash$table$[[$Actual production,$39,490$ units,$],[$Direct materials purchased $($actual$),$$ $719,700,],[$Standard cost of materials purchased,$726,8$ee$,],[$Standard direct materials costs per unit produced,$17,],[$Standard price tames actual amount of materials used,$685,7$ee$,]]$

Assume that Sheffer Systems had no beginning finished goods or direct materials inventory and only produced one product. Sheffer sold $30,338$ units during the period.

Required:

a$.$ Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the veriances.

b$.$ Assume Sheffer prorates all variances to the appropriate accounts. Prepare the entries Sheffer would make to record and close out the variances.

Complete this question by entering your answers in the tabs below.

Required A

Required $8$

Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the wariances.

Note: If no ertry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account fleld.

Journal entry worksheet

A

$8$

c

Record the standard cost of materials used and the materials efficiency variance.