Mojtaba Corporation uses standard costing and reports the following year end balances:

Ending Work in Process Inventory $200,000

Ending Finished Goods Inventory 300,000

Cost of Goods Sold 500,000

Total $1,000,000

The year-end balances in the variance accounts were reported:

Direct Materials Purchase Price $8,000 (credit balance)

Direct Materials Quantity 4,000 (credit balance)

Direct Labor Rate 5,000 (debit balance)

Direct Labor Efficiency 3,000 (credit balance)

Net $10,000 (credit balance)

The correct journal entry to dispose of (close) the variance accounts assuming that the variances are considered significant is: