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Overhead Variances and Their Disposal Wamer Company has the following data for the past year: Actual overhead $362,000 Applied overhead: Work-in-process inventory $80,000 Finished goods

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Overhead Variances and Their Disposal Wamer Company has the following data for the past year: Actual overhead $362,000 Applied overhead: Work-in-process inventory $80,000 Finished goods Inventory 160,000 Cost of goods sold 160,000 Total $400,000 Warner uses the overhead control account to accumulate both actual and applied overhead Required: 1. Calculate the overhead variance for the year. -38,000 Overapplied Provide the appropriate adjusting journal entry to close the overhead variance to cost of Goods Sold, Overhead Control 38.000 Cost of Goods Sold 38,000 33.000 2. Assume the variance calculated in material. Atter prorating, close the variances to the appropriate accounts. If an amount box does not require an entry, leave it blanic Overhead Control Work-in-Process Inventory Finished Goods Inventary v Cost of Goods Sold 20 X X Assume the variance calculated is material. Arter prorating, provide the Nial ending balances of thiest accounts. Unadjusted Prorated Overapplied Adjusted Balance Overhead Balance Work in Process inventory $80,000 Finished Goods Inventory 5160,000 Cost of Goods Sold $160,000 X X X 3. What if the variance is of the opposite sign calculated in Requirement Provide the appropriate adjusting journal entries for Requirements 1 and 2 Fora compound transaction If an amount box does not require an entry, leave it blank Variance maternal cost of Goods Sold -16.00 Overhead Control x 3. What if the variance is of the opposite sign calculated in Requirement 17 Provide the appropriate adjusting journal entries for Requirements 1 and 2. For a compound transaction, If an amount box does not require an entry, leave it blank. Variance immaterial Cost of Goods Sold v Overhead Control 1.000X -3.000 X X Variance materiat Work-in-Process Inventory Finished Goods Inventory Cost of Goods sold Overhead Control X

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