Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical

capacity for the plant is defined as $50,400$ machine hours per year, which represents $25,200$ units of output. Annual

budgeted fixed factory overhead costs are $$252,000$ and the budgeted variable factory overhead cost rate is $$2\mathrm{.}10$ 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 $18,600$ units, which took $39,400$ machine hours. Actual fixed factory overhead costs for

the year amounted to $$247,200$ while the actual variable overhead cost per unit was $$2\mathrm{.}00.$

Brief Exercise $15-23($Algo$)$ Provide an appropriate end$-$of$-$year closing entry.... $[$LO $15-4]$

Based on the information provided above, provide an appropriate end$-$of$-$year closing entry for each of the following two independent

situations:

Required:

$($a$)$ The net factory overhead cost variance is closed entirely to Cost of Goods Sold $($CGS$),$

$($b$)$ The net factory overhead variance is allocated among WIP Inventory, Finished Goods Inventory, and CGS using the following

percentages: $30\%,20\%,$ and $50\%,$ respectively.

Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for

a transaction or event, select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the net variance closed to cost of goods sold.

Note: Enter debits before credits.