A Merchandiser Uses a Perpetual Inventory System

question 30

Multiple Choice

A merchandiser uses a perpetual inventory system.The beginning Retained Earnings balance of the merchandiser was $95,000.During the year,Sales Revenue amounted to $75,000,Cost of Goods Sold was $30,000,and all other expenses totaled $12,000.The company declared and paid $19,000 as dividends.The last step in the closing process would include ________.

• A)a debit to Income Summary for $33,000
• B)a credit to Income Summary for $19,000
• C)a debit to the Retained Earnings account for $33,000
• D)a debit to the Retained Earnings account for $19,000

Identify and compute various types of variances related to materials, labor, and overhead.

Differentiate between favorable and unfavorable variances and understand their implications for managerial decision-making.

Calculate materials quantity and price variances to assess materials efficiency and cost management.

Calculate labor efficiency and rate variances to evaluate the effectiveness of labor utilization and wage rate management.

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Definitions:

Details

Specific pieces of information that pertain to a subject or context, often crucial for understanding a broader topic.

Competitive Advantage

A unique attribute or combination of attributes that allows a company to outperform its competitors, offering greater value to customers.

Value

The importance, worth, or usefulness of something to an individual or organization.

Product Category

A classification of products that share common features or are aimed at meeting a similar need or interest.