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Warner Company has the following data for the past year Actual overhead $470000 Applied overhead: Work-in-process inventory $100000 Finished goods inventory 200000 Cost of goods sold

Warner Company has the following data for the past year: Actual overhead ....... $470,000 Applied overhead: Work-in-process inventory .. $100,000 Finished goods inventory .. 200,000 Cost of goods sold ..... 200,000 Total .............. $500,000 Warner uses the overhead control account to accumulate both actual and applied overhead. Required: 1. Calculate the overhead variance for the year and close it to cost of goods sold. 2. Assume the variance calculated is material. After prorating, close the variances to the appropriate accounts and provide the final ending balances of these accounts. 3. What if the variance is of the opposite sign calculated in Requirement 1? Provide the appropriate adjusting journal entries for Requirements 1 and 2.

Apr 07 2020 View more View Less

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