Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 39

Refer to the journal entries made in Brief Exercise 15-22. Provide an appropriate end-of-year closing entry for each of the following two independent situations: (a) the net overhead cost variance is closed entirely to Cost of Goods Sold, and (b) the net overhead variance is allocated among WIP Inventory, Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70%, respectively.