Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,100 machine hours per year, which represents 25,050 units of output. Annual budgeted fixed factory overhead costs are $250,500 and the budgeted variable factory overhead cost rate is $2.00 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 18,500 units, which took 39,100 machine hours. Actual fixed factory overhead costs for the year amounted to $246,100 while the actual variable overhead cost per unit was $1.90.

Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold (CGS) using the following percentages: 20%, 20%, and 60%, respectively. Provide the proper journal entry to close out the manufacturing overhead variances for the year. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) List of General Journal Entries Title:No journal entry required;Accumulated depreciation Factory;Cost of goods sold;Factory overhead;Finished goods inventory;Fixed overhead spending variance;Production volume variance;Salaries payable;Total flexible budget variance;Utilities payable;Variable overhead efficiency variance;Variable overhead spending variance;Work in process inventory.

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Record the entry to close the variance accounts to Work in process inventory, Finished goods inventory, and Cost of goods sold.

	Journal entry should be:	Debit	Credit
	Fixed overhead spending variance [250500-246100]	$ 4,400
	Production volume variance [(50100-18500*2)*5]		$ 65,500
	Variable overhead spending variance [(2-1.9)*39100] =	$ 3,910
	Variable overhead efficiency variance [2*(39100-18500*2)]		$ 4,200
	Work in process inventory [61390*20%]	$ 12,278
	Finished goods inventory [61390*20%]	$ 12,278
	COGS [61390*60%]	$ 36,834