Exercise 17-25 (Algo) Prorating Direct Materials Cost Variances (LO 17-1) The cost analyst for Sheffer Systems collected the following data concerning direct materials: Actual production Direct materials purchased (actual) Standard cost of materials purchased i Standard direct materials costs per unit produced Standard price tines actual amount of materials used 38,400 units $ 718,700 724,800 17 668,200 Assume that Sheffer Systems had no beginning finished goods or direct materials inventory and only produced one product. Sheffer sold 29,568 units during the period. Required: a. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. b. Assume Sheffer prorates all variances to the appropriate accounts. Prepare the entries Sheffer 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 Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close out the variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet A B C Record the standard cost of materials used and the materials efficiency variance. Prev 5 of 10 Next > Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to reco variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fiel View transaction list Journal entry worksheet A B C Record the standard cost of materials used and the materials efficiency variance. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B x variances. Assume Sheffer writes off all variances to Cost of Goods Sold. Prepare the entries Sheffer would make to record and close an Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list 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 Record entry Clear entry View general journal Required A Required B > View transaction list Journal entry worksheet