(Variance journal entries) At year end 2010, the trial balance of Pennopscott Corp. showed the following accounts and amounts:
|
Debit |
Credit |
|
|
Direct Material Inventory |
$ 73,200 |
|
|
Work in Process Inventory |
87,840 |
|
|
Finished Goods Inventory |
131,760 |
|
|
Cost of Goods Sold |
1,171,200 |
|
|
Material Price Variance |
14,500 |
|
|
Material Quantity Variance |
|
$21,930 |
|
Labor Rate Variance |
|
2,200 |
|
Labor Efficiency Variance |
8,780 |
|
|
VOH Spending Variance |
|
7,200 |
|
VOH Efficiency Variance |
600 |
|
|
FOH Spending Variance |
1,300 |
|
|
Volume Variance |
2,950 |
|
Assume that, taken together, the variances are believed to be significant. Prepare the journal entries to close the variances at year end. Round any necessary calculations to one decimal point.