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 $14,250 Direct Materials Price Variance Direct Materials Usage Variance Direct Labor Rate Variance Direct Labor Efficiency Variance Unadjusted Cost of Goods Sold equals $1,590,000, unadjusted Work in Process equals $276,000, and unadjusted Finished Goods equals $200,000. Required: $1,260 810 $13,000 her 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close 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 "o". Cost of Goods Sold 27.250 v Direct Materials Price Variance o V 14,250 Direct Labor Efficiency Variance Close variances with debit balance Direct Materials Usage Variance / Direct Labor Rate Variance 13,00o v 1.260 810 V Cost of Goods Sold 2.070 V Close variances with credit balance