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Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $150 per unit. Its standard cost per unit produced is $120 and its selling and administrative expenses totaled $242,500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: $ 8,000 F Materials price variance Materials quantity $11,700 U variance Labor rate variance 5,000 U $5,900 F Labor efficiency variance Fixed overhead budget variance Fixed overhead volume variance $4,000 F $13,500 F Required: 1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Required Required 1 2 When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? The cost of goods sold will by Required 1 Required 2 Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $150 per unit. Its standard cost per unit produced is $120 and its selling and administrative expenses totaled $242,500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed overhead budget variance Fixed overhead volume variance $ 8,000 F $11,700 U $5,000 U $ 5,900 F $ 4,000 F $13,500 F Required: 1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Required Required Prepare an income statement for the year. Forsyth Company Income Statement For the Year Total variance adjustments Required 1 Required 2