54. (Variance disposition) Ito Manufacturing had the following variances at yearend 2001:

Material price variance $23,400 U Material quantity variance 24,900 F Labor rate variance 5,250 F Labor efficiency variance 36,900 U Variable overhead spending variance 3,000 U Variable overhead efficiency variance 1,800 F Fixed overhead spending variance 6,600 F Volume variance 16,800 U In addition, the inventory and cost of goods sold account balances were as follows at year-end 2001:
Raw Material Inventory $ 338,793 Work in Process Inventory 914,277 Finished Goods Inventory 663,663 Cost of Goods Sold 2,724,267

a. Assuming that all variances are insignificant, prepare the journal entry at December 31 to dispose of them.

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

c. Assuming that all variances are significant, prepare the necessary journal entries at December 31 to dispose of them.

d. What will be the balance in each of the inventory accounts and cost of goods sold account?