Examlex

Solved

A Company That Uses the Perpetual Inventory System Sold Goods

question 121

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer on account for $2,300.The cost of the goods sold was $1,150.Which of the following journal entries correctly records this transaction?


Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Labor Rate Variance

A specific type of variance that measures the difference between the actual hourly wage paid to workers and the standard rate expected.

Related Questions