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Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year - end.

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 (CGS) 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 $ 100,920
Direct labor 151,380
Applied manufacturing overhead 121,104
Direct materials inventory at 12/3165,600
Cost of goods sold for the year ended 12/31:
Direct materials $ 403,680
Direct labor 857,820
Applied manufacturing overhead 686,256
Direct materials price variance (unfavorable)11,600
Direct materials usage variance (favorable)17,400
Direct labor rate variance (unfavorable)23,200
Direct labor efficiency variance (favorable)5,800
Actual manufacturing overhead incurred 800,400
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 (CGS) for the year ended December 31, after all variances have been prorated.

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