Exercise 17-22 (Static) Prorating Direct Material Cost Variances (LO 17-1) In reviewing activity for July, the controller of Mathis, Inc, collected the following data concerning direct materials. 103,000 units $1,642,800 1,554,000 Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used 1,405,950 Assume that Mathis Company had no beginning finished goods inventory and only produced one product. Mathis sold 90,640 units during the period. Required: a. Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances b. Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances Complete this question by entering your answers in the tabs below. Required A Required B Assume Mathis writes off all variances to cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances (if no entry is required for a transaction/event, select "No journal entry required in the first account field) View transaction lit requir e quired is Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list A Record the standard cost of materials used and the materials efficiency variance. B Record the cost of the direct materials purchased and the materials price variance. c Record the dosure of direct labor cost variances to Cost of Goods Sold. Note : - Journal entry has been entered Required A Required B Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list A Record the standard cost of materials used and the materials efficiency variance. B Record the cost of the direct materials purchased and the materials price variance, Record the closure of direct labor cost variances to Cost of Goods Sold and Finished Goods Inventory. Credit Note : = journal entry has been entered Record entry Clear entry View general journal Exercise 17-22 (Stotic) Prorating Direct Material Cost Variances (LO 17-1) In reviewing activity for July, the controller of Mathis, Inc. collected the following data concerning direct materials. 103,000 units $1,642,800 1,554,000 Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used 1,405,950 Assume that Mathis Company had no beginning finished goods inventory and only produced one product. Mathis sold 90,640 units during the period. Required: a. Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances b. Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances Complete this question by entering your answers in the tabs below. Required A Required B Assume Mathis writes off all variances to cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances (if no entry is required for a transaction/event, select "No journal entry required in the first account field,) View transaction lit requr R equired Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list A Record the standard cost of materials used and the materials efficiency variance. B Record the cost of the direct materials purchased and the materials price variance. C Record the closure of direct labor cost variances to Cost of Goods Sold. Note: = journal entry has been entered Required A Required B Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list A Record the standard cost of materials used and the materials efficiency variance. B Record the cost of the direct materials purchased and the materials price variance, C Record the closure of direct labor cost variances to Cost of Goods Sold and Finished Goods Inventory. Credit Note : = journal entry has been entered Record entry Clear entry View general journal