Which One of the Following Journal Entries in a Standard

question 54

Multiple Choice

Which one of the following journal entries in a standard cost system is needed at the end of the period to close out to Cost of Goods Sold an unfavorable production-volume variance?

• A) A credit to Finished Goods Inventory, at standard cost.
• B) A credit to Cost of Goods sold, at standard cost.
• C) A credit to Cost of Goods sold, at actual cost.
• D) A debit to the Production Volume Variance account.
• E) A debit to Cost of Goods sold.

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Definitions:

Diversity Of Citizenship

Under the Constitution, a basis for federal district court jurisdiction over a lawsuit between citizens of different states, a foreign country, and citizens of a state or different states or a foreign country and citizens of a state or states. The amount in controversy must be more than $75,000 before a federal court can exercise jurisdiction in such cases.

Federal Law

A body of law created by the federal government of a country, dealing with issues that affect the entire nation.

Treaty

A formal, ratified agreement between two or more sovereign states, usually in written form and governed by international law.

Civil Lawsuit

A court contention among several entities requesting either monetary compensation or a defined fulfillment, rather than facing criminal penalties.