Journal entries (continuation of 8-41).

Required 1. Prepare appropriate journal entries for variable and fixed manufacturing overhead (you will need to calculate the different variances to accomplish this).

2. Overhead variances may be used to reconcile the cost of goods sold account at the end of the fiscal year. Cost of goods sold (COGS) is then entered on the income statement.

CHAPTER 8 Show how COGS is reconciled through journal entries.