Overhead Variances and Their Disposal Warner Company has the following data for the past year...
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Overhead Variances and Their Disposal Warner Company has the following data for the past year Actual overhead $838,500 Applied overhead Work in process inventory Finished goods inventory Cost of goods sold Total $172,000 344,000 344,000 3800,000 both actual and applied overhead Warner uses the overhead control account to accumulele Required: 1. Calculate the overhead variance for the year. 21,500 Overapplied Provide the appropriate adjusting journal entry to close the overhead variance to Cost of Goods Sold. Overhead Control 21.500 Cost of Goods Sold 21,500 2. Assume the variance calculated is material. After prorating, close the variances to the appropriate accounts. If an amount bow Overhead Control 21,500 Inventory Work-in-Process Inventory Finished Goods Inventory Assume the variance calculated is material. After prorating provide the final ending balances of these accounts. Unadjusted Prorated Overapplied Adjusted Balance Overhead Balance Work-in-Process Inventory $172,000 Finished Goods Inventory $344,000 Cost of Goods Sold $344,000 3. What if the variance is of the opposite sign calculated in Requirement 17 Provide the appropriate adjusting journal entries for F Variance immaterial Variance material HII
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