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) Standard cont of materials purchased Standard direct materials costa per unit produced Standard price times actual amount of materials used 109,000 units $1,786,800 1,566,000 14 1,417,950 Assume that Mathis Company had no beginning finished goods inventory and only produced one product. Mathis sold 95,920 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 b. Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out variances the variances 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.) View transaction list Journal entry worksheet Record the standard cost of materials used and the materials efficiency variance. Note: Enter debits before credits Event Credit 1 General Journal Cost of goods sold Direct materials efficiency variance Direct materials price variance Debit 112,750 108,050 220,800 Record entry Clear entry View general Journal Journal entry worksheet B Record the cost of the direct materials purchased and the materials price variance. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general Journal Journal entry worksheet