Calculate the Financial Effect of a Goods Issue Posting Based

question 76

Multiple Choice

Calculate the financial effect of a goods issue posting based on the following data.Procurement type: Internal Materials: Pens
Quantity shipped: 100
Valuation price at the receiving plant for one pen) : $2.30
Valuation price at the sending plant for one pen) : $2.40

• A)Debit GR/IR,credit inventory for $230.00.
• B)Debit inventory,credit COGS for $240.00.
• C)Debit inventory,credit GR/IR for $230.00.
• D)Debit and credit to the inventory account for $240.00.
• E)No financial effect takes place at this step,so no FI document is created.

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Definitions:

Current Path

The path or route that electric current follows through a circuit or an electrical device.

Series-Parallel

A configuration in electrical circuits where components are arranged in a combination of series and parallel connections to manage voltage and current distribution.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment by comparing the present value of its cash inflows to the present value of its cash outflows.