elook Cangg 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 laber variance accounts at year-end Debit Credit Direct Materials Price Variance $13,450 Direct Materials Usage Variance $1,100 Direct Labor Rate Variance 870 Direct Labor Efficiency Variance $12,3401 O Unadjusted Cost of Goods Sold equals $1,500,000, unadjusted Work in Process equals $236,000, and unadjusted Finished Goods equal $180,000 Required 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cast of Goods Sold. Note: Close the v amount box does not require an entry, live it blank. What is the adjusted balance in Cost of Goods Sold after closing out the variances? D 0+0 t balance first I n in a variance account that exceeds $10,000 is considered matenal? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Puate the largest of the laber What is the adjusted balance in Cost of Goods Sold after closing out the var 2. What if any ending balance in a variance account that exceeds $10,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold (8) Free the rest 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 Gees Sold, workin Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,050,000, the prime cost in Work in Process is $165,200, and the pr Goods is $125,000. If an amount box does not require an entry, leave it blank. Round all interim calculations to four decimal places, and round your final answers to the nearest dollar. (b) (c) what are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances Adjusted balance Work in Process Finished Goods Cast of Goods Sold Check My Work Prevos 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 $13,450 Direct Materials Usage Variance $1,100 Direct Labor Rate Variance 870 Direct Labor Efficiency Variance $12,340 Unadjusted Cost of Goods Sold equals $1,500,000, unadjusted Work in Process equals $236,000, and unadjusted Finished Goods equals $180,000. Required: 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 amount box does not require an entry, leave it blank. Cost of Goods Sold Direct Materials Price Variance Direct Labor Efficiency Variance Direct Materials Usage Variance Direct Labor Rate Variance Cost of Goods Sold Feedback 000 000 What is the adjusted balance in Cost of Goods Sold after closing out the variances Check My W Companies must restate costs and inventones at the end of the year to actual cost. So, variance accounts must be closed out and their balances applied to Cost of Goods Sold (f immaterial) or prorated among Cost of Goods Sold, Work in Process, and Finished Goods. 2. What if any ending balance in a variance account that exceeds $10,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (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 Cast of Goods Sold, Workin Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Soid is $1,050,000, the prime cost in Work in Process is $165,200, and the prime cost in inte Goods is $126,000. If an amount box does not require an entry, leave it blank. Round all interim calculations to four decimal places, and round your final answers to the nearest dollar. (a) Direct Materials Usage Varance Cost of Goods Sold Direct Labor Rate Variance (b) Work in Process Direct Materials Usage Variance Cost of Goods Sold Finished Goods x (c) Direct Labor Rate Variance Cash x Com of Goods S Direct Materials Price Variance X