eBook Question Content Area Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead $288,000 Applied overhead: Work-in-process inventory $64,000 Finished goods inventory 128,000 Cost of goods sold 128,000 Total $320,000 Warner uses the overhead control account to accumulate both actual and applied overhead. Required: Question Content Area 1. Calculate the overhead variance for the year. $fill in the blank 385782f99ff604f_1 32,000 Overapplied Feedback Area Feedback Question Content Area Provide the appropriate adjusting journal entry to close the overhead variance to Cost of Goods Sold. blank Overhead Control Overhead Control Incorrect Cost of Goods Sold Cost of Goods Sold Feedback Area Feedback Actual OH - Applied OH = Over/Underapplied. If variance is not material, it is closed out to cost of goods sold. Question Content Area 2. Assume the variance calculated is material. After prorating, close the variances to the appropriate accounts. If an amount box does not require an entry, leave it blank. blank Overhead Control Overhead Control Overhead Control Work-in-Process Inventory Work-in-Process Inventory Work-in-Process Inventory Finished Goods Inventory Finished Goods Inventory Finished Goods Inventory Cost of Goods Sold Cost of Goods Sold Cost of Goods Sold Feedback Area Feedback Partially correct Question Content Area Assume the variance calculated is material. After prorating, provide the final ending balances of these accounts. Unadjusted Balance Prorated Overapplied Overhead Adjusted Balance Work-in-Process Inventory $64,000 $fill in the blank 2fa2b901dff6048_1 $fill in the blank 2fa2b901dff6048_2 Finished Goods Inventory $128,000 $fill in the blank 2fa2b901dff6048_3 $fill in the blank 2fa2b901dff6048_4 Cost of Goods Sold $128,000 $fill in the blank 2fa2b901dff6048_5 $fill in the blank 2fa2b901dff6048_6 Feedback Area Feedback If variance is material, it is prorated among Work in Process, Finished Goods, and Cost of Goods Sold. Question Content Area 3. What if the variance is of the opposite sign calculated in Requirement 1? Provide the appropriate adjusting journal entries for Requirements 1 and 2. For a compound transaction, if an amount box does not require an entry, leave it blank. Variance immaterial Cost of Goods Sold Cost of Goods Sold Overhead Control Overhead Control Variance material Work-in-Process Inventory Work-in-Process Inventory Work-in-Process Inventory Finished Goods Inventory Finished Goods Inventory Finished Goods Inventory Cost of Goods Sold Cost of Goods Sold Cost of Goods Sold Overhead Control Overhead Control Overhead Control