Exercise 17-22 (Algo) Prorating Direct Material Cost Variances (LO 17-1) In reviewing activity for July, the controller of Mathis, Inc., collected the following data concerning direct materials. Actual production Direct materials purchased (actual) 106,000 units Standard cost of materials purchased $1,714,800 1,560,000 Standard direct materials costs per unit produced Standard price times actual amount of materials used 14 1,411,950 CR Assume that Mathis Company had no beginning finished goods inventory and only produced one product. Mathis sold 93,280 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 Assume Mathis writes off all variances to Cost of Goods Sold. 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.) Required A Required B. Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record an- variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fie View transaction list Journal entry worksheet Record the standard cost of materials used and the materials efficiency variance. Note: Enter debits before credits. Event General Journal Debit Credit 1 Cost of goods sold Direct materials efficiency variance Clear entry Record entry 72,050 72,050 View general journal Required A Required B Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to recor variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first accou View transaction list Journal entry worksheet Required A. Required B Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first a View transaction list Journal entry worksheet Required A Required B Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first a View transaction 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 Clear entry View general journal 2 of 6 Record entry Required A Required B Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first acc View transaction list Journal entry worksheet