Exercise 17-23 (Algo) Prorating Direct Materials Cost Variances (LO 17-1) Fischer Fabrication reported the following information concerning its direct materials: Direct materials purchased (actual) Standard cost of materials purchased Standard price times actual amount of materials used i Actual production Standard direct materials costs per unit produced $ 371,300 $ 356,500 $ 328,500 55,900 units $ 6 Assume that Fischer Fabrication had no beginning finished goods inventory and only produced one product. A count of inventory showed that 4,472 units remained in the warehouse. Required: a. Assume Fischer writes off all variances to Cost of Goods Sold. Prepare the entries Fischer would make to record and close out the variances b. Assume Fischer prorates all variances to the appropriate accounts. Prepare the entries Fischer would make to record and close out the variances. Journal entry worksheet < A C Record the cost of the direct materials purchased and the materials price variance. Note: Enter debits before credits. Event 2 General Journal Debit Credit Journal entry worksheet < A B Record the closure of direct labor cost variances to Cost of Goods Sold. Note: Enter debits before credits. Event 3 General Journal Debit Credit Journal entry worksheet < A B C Record the standard cost of materials used and the materials efficiency variance. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal 12 Journal entry worksheet < A B C Record the cost of the direct materials purchased and the materials price variance. Note: Enter debits before credits.. Event 2 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B C Record the closure of direct labor cost variances to Cost of Goods Sold and Finished Goods Inventory. Note: Enter debits before credits. Event 3 General Journal Debit Credit Record entry Clear entry View general journal