Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (COGS) on the basis of the relative direct labor cost in these accounts at year-end.

 

The following information is for the year ended December 31:

 

The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80% of standard direct labor cost.

 

Finished goods inventory at 12/31:
Direct materials	$ 103,530
Direct labor	155,295
Applied manufacturing overhead	124,236
Direct materials inventory at 12/31	65,900
Cost of goods sold for the year ended 12/31:
Direct materials	$ 414,120
Direct labor	880,005
Applied manufacturing overhead	704,004
Direct materials price variance (unfavorable)	11,900
Direct materials usage variance (favorable)	17,850
Direct labor rate variance (unfavorable)	23,800
Direct labor efficiency variance (favorable)	5,950
Actual manufacturing overhead incurred	821,100

 

Required:

1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31.

2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials variances have been prorated.

3. Compute the total amount of direct labor cost in the Finished Goods Inventory at December 31, after all variances have been prorated.

4. Compute the total Cost of Goods Sold (COGS) for the year ended December 31, after a