Refer to the summary of variances in Exercise 11-17.At Bell Computers, the ending balance in Finished Goods Inventory is $125,000; the ending balance in Work in Process Inventory is $62,500, and the balance in Cost of Goods Sold is $437,500.
In Exercise 11-17, the variance summary for Bell Computers is as follows:Bell Computers
Variance Summary
For the Year Ended December 31, 2012
Material price variance ...........($ 4,200) favorable
Material quantity variance ............$ 3,300 unfavorable
Labor rate variance ..............(165) favorable
Labor efficiency variance ..........$ 2,650 unfavorable
Controllable overhead variance .........$ 2,550 unfavorable
Overhead volume variance ..........$ 4,550 unfavorable
Total ....................$ 8,685 unfavorable
Required:
Prepare a journal entry to close the variance accounts at Bell Computers. Assume that the total variance is material and is apportioned among Finished Goods Inventory, Work in Process Inventory, and Cost of Goods Sold.