It's Year-End and You Have the Task of Clearing Up

question 49

Essay

It's year-end and you have the task of clearing up the final accounting entries for management accounting.There is an unfavourable direct materials rate variance of $25,000 which needs to be closed.The company uses the proration approach in this situation, and it has been determined that half of the variance should be charged to finished goods and half to cost of goods sold.Required:
Prepare the necessary entry for the end of period adjustment.

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Definitions:

Misleading Statement

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Theory X/Theory Y

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Traits Model

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