The following variances existed at year-end 2010 for Muckstadt Production Company:

Material price variance ............$23,400 U

Material quantity variance .......... 24,900 F

Labor rate variance ............. 5,250 F

Labor efficiency variance .......... 36,900 U

Variance overhead spending variance ...... 3,000 U

Variance overhead efficiency variance ..... 1,800 F

Fixed overhead spending variance ....... 6,600 F

Volume variance ............. 16,800 U

In addition, the following inventory and Cost of Goods Sold account balances existed at year-end 2010:

Raw Material Inventory .........$320,600

Work in Process Inventory ...... 916,000

Finished Goods Inventory ........ 641,200

Cost of Goods Sold ......... 2,702,200

a. Prepare the journal entry at December 31 to dispose of the variances, assuming that all are insignificant.

b. After posting your entry in part (a), what is the balance in Cost of Goods Sold?

c. Prepare the journal entries at December 31 to dispose of the variances, assuming that all are significant.

d. After posting your entries in part (c), what are the balances in each inventory account and in Cost of Goods Sold?