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 price variance of $25,000 which needs to be closed from the manufacturing overhead account. 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.
Prepare the necessary entry for the end of period adjustment.
Definitions:
Human Happiness
A state of well-being characterized by emotions ranging from contentment to intense joy, often considered the ultimate goal or purpose in human life and a key measure of life satisfaction.
Virtue Ethics
An ethical theory that emphasizes the role of an individual's character and virtues in evaluating the morality of actions.
Action Guidance
Advice or instructions intended to direct or influence the decisions and actions of individuals or groups.
Justifications
Reasoning or arguments presented to show that actions or decisions were reasonable or necessary under the circumstances.
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