Given the Following Account Balances at the End of the First

question 110

Multiple Choice

Given the following account balances at the end of the first year of operations: $\begin{array}{lr}\text { Work in process inventory } & \$ 100,000 \\\text { Finished goods inventory } & 200,000 \\\text { Cost of goods sold } & 500,000 \\\text { Direct labour price variance } & 40,000 \mathrm{~F} \\\text { Direct labour efficiency variance } & 20,000 \mathrm{~F}\end{array}$
Assuming that variances are considered material, the entry and amount of direct labour variances allocated to the Finished Goods Inventory is:

• A) Credit $15,000
• B) Debit $15,000
• C) Credit $7,500
• D) Debit $60,000

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Definitions:

Stated Goals

Explicitly expressed objectives or targets that an individual, group, or organization aims to achieve.

High Profit

A term denoting a substantial financial gain that significantly exceeds the costs and expenses of doing business.

Low Expenses

Refers to minimized operating costs or outlays necessary for an entity to conduct its business activities.

Resource Maturity

The stage of development at which resources, such as technology or human skills, reach their highest potential of efficiency and effectiveness.