Following are the variances for Headland Cooking Company for the month of July. Assume that the price variance for direct materials is calculated at the time of purchase and that the amount of direct materials purchased is equal to the amount of direct materials used, with no beginning or ending inventories for direct materials (F = favourable and U = unfavourable). Direct materials price variance Direct materials efficiency variance Labour price variance Labour efficiency variance Fixed overhead spending variance Variable overhead spending variance Variable overhead efficiency variance $1,700 F 800 F 1,000 U 1,500 F 300 U 800 F 500 F Headland Cooking considers anything greater than $3,000 as a material variance. Following are end-of-period inventory balances: Work in process Finished goods Cost of goods sold $1,800 5,600 42,600 Prepare a journal entry to close the variances at the end of July. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Following are the variances for Headland Cooking Company for the month of July. Assume that the price variance for direct materials is calculated at the time of purchase and that the amount of direct materials purchased is equal to the amount of direct materials used, with no beginning or ending inventories for direct materials (F = favourable and U = unfavourable). Direct materials price variance Direct materials efficiency variance Labour price variance Labour efficiency variance Fixed overhead spending variance Variable overhead spending variance Variable overhead efficiency variance $1,700 F 800 F 1,000 U 1,500 F 300 U 800 F 500 F Headland Cooking considers anything greater than $3,000 as a material variance. Following are end-of-period inventory balances: Work in process Finished goods Cost of goods sold $1,800 5,600 42,600 Prepare a journal entry to close the variances at the end of July. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit