60% Yohan Company has the following belences in Its direct materials and direct labor varlance accounts at year-end: DebltCredit Direct Materials Price Varlance $13,450 Direct Materials Usage Varlance Direct Labor Rate Varlance Direct Labor Emiciency Variance $12,340 Unadjusted Cost of Goods Sold equals $1,600,000, unadjusted Work in Process equals $296,000, and unadjusted Finished Goods equals $200,000. $1,220 850 Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to dose them to Cost of Goods Sold. Note: Close the variances with a debit balance first. If an amount box does not require an entry, leave it blank or enter "0". Cost of Goods Sold 25,790 Direct Materials Price Variance / 13,450 olrect Labor Emclency Varlance 12,340 Close variances with debit balance Direct Materials Usage Variance1.220 Direct Labor Rate Varlance V Cost of Goods Sold Close variances with credit balance 850 -2,070 V 2,070 What is the adjusted balance in Cost of Goods Sold after closing out the variances? 1,6: 2. What if any ending balance in a variance account that exceeds $8,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost, ot Goods Sold, Work in Process, and Finished Goods on the basis of accounts. The prime cost in Cost of Goods Sold is $1,060,000, the prime cost in Work in Process is $163,000, and the prime cost in Finished Goods is $133,000. If an amount box does not require an entry, leave it blank or enter "0". Note: Round al nterim calculations to three decimal places, and round your final answers to the nearest dollar. Adjust credit entry for rounding to ensure debits equal credits in jounal entry a) Direct Meteriels Usage Varlance 1,220 Direct Labor Rate Varlance Cost of Goods Sold Work in Process / Finished Goods Cost of Goods Sold Direct Labor Efficlency Varlance 1,483 X 1,210 9,646 X 12,339 (c) Work in Process 1,4631 1,210 9,646X Finished Goods Cost of Goods Sold Direct Materials Price Varfance 12,339 X What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all verlances? Adjusted balance 5 29 work in process Finished Goods Cost of Goods Sold 2021 S 1,62