Question:
(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.