Gates Corporation 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 Actual production Standard direct materials costs per unit produced $691,000 $743,800 $858,000 41,800 units $ 20 Assume that Gates Company had no beginning finished goods inventory and only produced one product. Gates sold 38,000 units during the period. Required: a. Assume Gates writes off all variances to Cost of Goods Sold. Prepare the entries Gates would make to record and close out the variances. b. Assume Gates prorates all variances to the appropriate accounts. Prepare the entries Gates 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 Gates writes off all variances to Cost of Goods Sold. Prepare the entries Gates 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 Gates Corporation 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 Actual production Standard direct materials costs per unit produced $691,000 $743,800 $858,000 41,800 units $ 20 Assume that Gates Company had no beginning finished goods inventory and only produced one product. Gates sold 38,000 units during the period. Required: a. Assume Gates writes off all variances to Cost of Goods Sold. Prepare the entries Gates would make to record and close out the variances. b. Assume Gates prorates all variances to the appropriate accounts. Prepare the entries Gates 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 Gates writes off all variances to Cost of Goods Sold. Prepare the entries Gates 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