SB $($Algo$)$ Patel and Sons $...$

Skip to question

$[$The following information applies to the questions displayed below.$]$

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as $51,900$ machine hours per year, which represents $25,950$ units of output. Annual budgeted fixed factory overhead costs are $$259,500$ and the budgeted variable factory overhead cost rate is $$2\mathrm{.}60$ per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was $19,600$ units, which took $40,900$ machine hours. Actual fixed factory overhead costs for the year amounted to $$252,700$ while the actual variable overhead cost per unit was $$2\mathrm{.}50.$

Brief Exercise $15-23($Algo$)$ Provide an appropriate end$-$of$-$year closing entry.... $[$LO $15-4]$

Based on the information provided above, provide an appropriate end$-$of$-$year closing entry for each of the following two independent situations: $($a$)$ the net factory overhead cost variance is closed entirely to Cost of Goods Sold $($CSG$),$ and $($b$)$ the net factory overhead variance is allocated among WIP Inventory, Finished Goods Inventory, and CGS using the following percentages: $20\%,20\%,$ and $60\%,$ respectively. $($Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$