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

Exercise 29

As an extension of Brief Exercise 15-19, assume that at the end of the year management of Patel and Sons, Inc., decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70%, respectively. Provide the proper journal entry to close out the manufacturing overhead variances for the year.