(Journal entries) Miami Chemical had the following balances in its trial balance at year end 2001:
|
Debit |
||
|
Direct Material Inventory |
$36,600 |
|
|
Work in Process Inventory |
43,920 |
|
|
Finished Goods Inventory |
65,880 |
|
|
Cost of Goods Sold |
585,600 |
|
|
Material Price Variance |
7,250 |
$10,925 |
|
Material Quantity Variance |
1,200 |
|
|
Labor Rate Variance |
||
|
Labor Efficiency Variance |
4,390 |
|
|
VOH Spending Variance |
3,600 |
|
|
VOH Efficiency Variance |
200 |
|
|
FOH Spending Variance |
650 |
|
|
Volume Variance |
1,375 |
|
Assume that the variances, taken together, are believed to be significant. Prepare the journal entries to dispose of the variances.