Closing Variance and Overhead Accounts (Appendix). Gonzaga Products had the following balances at the end of its fiscal year.
a. Prepare a journal entry to close the variance and manufacturing overhead accounts. Assume the balances are not significant and thus are closed to cost of goods sold.
b. Assume all products were sold and the company has no ending inventories. After making the entry in requirementa, does the balance of cost of goods sold on the income statement reflect standard costs or actual costs? Explain.