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)	$ 371,300
Standard cost of materials purchased	$ 356,500
Standard price times actual amount of materials used	$ 328,500
Actual production	55,900	units
Standard direct materials costs per unit produced	$ 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.