Yohan Company has the following balances in its direct materials and direct labor variance accounts at...

  

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Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Debit Credit Direct Materials Price Variance $13,550 Direct Materials Usage Variance $1,120 Direct Labor Rate Variance 800 Direct Labor Efficiency Variance $12,340 Unadjusted Cost of Goods Sold equals $1,520,000, unadjusted Work in Process equals $246,000, and unadjusted Finished Goods equals $280,00o. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. Note Cost of Goods Sold v 25,890 Direct Materials Price Variance v 13,550 Direct Labor Efficiency Variance v 12,340 V Close variances with debit balance Direct Materials Usage Variance v 1,120 Direct Labor Rate Variance v 800 Cost of Goods Sold v 1,920 V Close variances with credit balance Feedback Check My Work What is the adjusted balance in Cost of Goods Sold after closing out the variances? 2. What if any ending balance in a variance account that exceeds $10,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,050,000, the prime cost in Work in Process is $165,200, and the prime cost in Finished Goods is $126,000. If an amount box does not require an entry, leave it blank or enter "0", Round all interim calculations to four decimal places, and round your final answers to the nearest dollar. (a) Direct Materials Usage Variance 1.100 Direct Labor Rate Variance 870 Cost of Goods Sold 1,970 Work in Process (b) Finished Goods Cost of Goods Sold Direct Labor Efficiency Variance 12.340 () Work in Process Finished Goods Cost of Goods Sold Direct Materials Price Variance What are the adjusted balances in Work Process, Finished Goods, and Cost of Goods Sold after closing out all variances? Adjusted balance Work in Process Finished Goods Cost of Goods Sold Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Debit Credit Direct Materials Price Variance $13,550 Direct Materials Usage Variance $1,120 Direct Labor Rate Variance 800 Direct Labor Efficiency Variance $12,340 Unadjusted Cost of Goods Sold equals $1,520,000, unadjusted Work in Process equals $246,000, and unadjusted Finished Goods equals $280,00o. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. Note Cost of Goods Sold v 25,890 Direct Materials Price Variance v 13,550 Direct Labor Efficiency Variance v 12,340 V Close variances with debit balance Direct Materials Usage Variance v 1,120 Direct Labor Rate Variance v 800 Cost of Goods Sold v 1,920 V Close variances with credit balance Feedback Check My Work What is the adjusted balance in Cost of Goods Sold after closing out the variances? 2. What if any ending balance in a variance account that exceeds $10,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,050,000, the prime cost in Work in Process is $165,200, and the prime cost in Finished Goods is $126,000. If an amount box does not require an entry, leave it blank or enter "0", Round all interim calculations to four decimal places, and round your final answers to the nearest dollar. (a) Direct Materials Usage Variance 1.100 Direct Labor Rate Variance 870 Cost of Goods Sold 1,970 Work in Process (b) Finished Goods Cost of Goods Sold Direct Labor Efficiency Variance 12.340 () Work in Process Finished Goods Cost of Goods Sold Direct Materials Price Variance What are the adjusted balances in Work Process, Finished Goods, and Cost of Goods Sold after closing out all variances? Adjusted balance Work in Process Finished Goods Cost of Goods Sold

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1 Account title Debit Credit 1 Cost of goods sold 25890 Direct material price variance 13550 Direct ... View the full answer