SB $($Algo$)$ Patel and Sons $...$

$[$The following information applies to the questions displayed below.$]$

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 $15-20($Algo$)$ Assume that at the end of the year, management of Patel... $[$LO $15-4]$

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: $30\%,20\%,$ and $50\%,$

respectively. Provide the proper journal entry to close out the manufacturing overhead variances for the year.

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 entry to close the variance accounts to Work in process inventory,

Finished goods inventory, and Cost of goods sold.

Note: Enter debits before credits.