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Evgen [1.6K]
3 years ago
10

Theta Company has the following variances at the end of February:

Mathematics
1 answer:
allochka39001 [22]3 years ago
8 0

Answer:

Debit Cost of Goods Sold $710

Credit Material Price Variance $40

Credit Material Usage Variance $225

Credit Labor Rate Variance $110

Credit Labor Efficiency Variance $335

Step-by-step explanation:

Preparation of the journal entry to be passed by Theta Company at the end of the month of February to close the variances

Debit Cost of Goods Sold $710

($40+$225+$110+$335)

Credit Material Price Variance $40

Credit Material Usage Variance $225

Credit Labor Rate Variance $110

Credit Labor Efficiency Variance $335

(To close the variances)

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Answer:

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Step-by-step explanation:

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In this question:

Compounded quarterly means that n = 4

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This is P.

A(t) = P(1 + \frac{r}{n})^{nt}

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