Gates Corporation reported the following information concerning its direct materials.

Direct materials purchased (actual)	$	673,000
Standard cost of materials purchased	$	688,000
Standard price times actual amount of materials used	$	444,000
Actual production		22,000	units
Standard direct materials costs per unit produced	$	20

Assume that Gates Company had no beginning finished goods inventory and only produced one product. Gates sold 20,000 units during the period.

Each journal entry has 3 parts it was filled out

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Event	General Journal	Debit	Credit
A.1	Record the standard cost of materials used and the materials efficiency variance.
a.2	Record the cost of the direct materials purchased and the materials price variance.
a.3	Record the closure of direct labor cost variances to Cost of Goods Sold.

B. Assume Gates prorates all variances to the appropriate accounts. 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.)

No	Event	General Journal	Debit	Credit
b.1	Record the standard cost of materials used and the materials efficiency variance.
b.2	Record the cost of the direct materials purchased and the materials price variance.
b.3	Record the closure of direct labor cost variances to Cost of Goods Sold and Finished Goods Inventory.