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Garcia and Company Has Just Finished Closing the Books for the Year

Question 57

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Garcia and Company has just finished closing the books for the year and has the following variances for its manufacturing operation: Garcia and Company has just finished closing the books for the year and has the following variances for its manufacturing operation: Required: Prorate the variances above and prepare the appropriate journal entry. Overhead has been applied to the product using direct labor hours; 25 percent of the standard-allowed direct labor hours relate to work in process; 20 percent to finished goods, and the balance to cost of goods sold. During the year 100,000 units of material were purchased; its disposition during the year follows:
Required: Prorate the variances above and prepare the appropriate journal entry.
Overhead has been applied to the product using direct labor hours; 25 percent of the standard-allowed direct labor hours relate to work in process; 20 percent to finished goods, and the balance to cost of goods sold. During the year 100,000 units of material were purchased; its disposition during the year follows:
Garcia and Company has just finished closing the books for the year and has the following variances for its manufacturing operation: Required: Prorate the variances above and prepare the appropriate journal entry. Overhead has been applied to the product using direct labor hours; 25 percent of the standard-allowed direct labor hours relate to work in process; 20 percent to finished goods, and the balance to cost of goods sold. During the year 100,000 units of material were purchased; its disposition during the year follows:

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