(Journal entries) Thurston Custom Floors had the following balances in its trial balance at year-end 1996:

Assume that the variances, taken together, are believed to be significant. Prepare the journal entries to dispose of the variances.LO1

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Direct Material Inventory Work in Process Inventory Finished Goods Inventory DEBIT $ 36,600 CREDIT 43,920 65,880 Cost of Goods Sold 585,600 Material Price Variance 7,250 Material Quantity Variance $10,925 Labor Rate Variance 1,200 Labor Efficiency Variance 4,390 VOH Spending Variance 3,600 VOH Efficiency Variance 200 FOH Spending Variance 650 Volume Variance 1,375