Closing the Balances in The Variance Accounts at the End of the Year

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end:

	Debit	Credit
Direct Materials Price Variance	$14,350
Direct Materials Usage Variance		$1,210
Direct Labor Rate Variance		890
Direct Labor Efficiency Variance	$12,520

Unadjusted Cost of Goods Sold equals $1,520,000, unadjusted Work in Process equals $266,000, and unadjusted Finished Goods equals $260,000.

What if any ending balance in a variance account that exceeds $10,000 is considered material? (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 of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,060,000, the prime cost in Work in Process is $160,400, and the prime cost in Finished Goods is $128,000. If an amount box does not require an entry, leave it blank.

Note: Round all interim 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 journal entry.

B-)work in process ???

finished goods ???

cogs ???

direct labor efficiency variance 12,520

c-) work in process ???

finished goods ???

cogs ???

direct materials price variance 14,350