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:

Standards

Established norms or requirements in various fields that act as a basis for comparison, quality measures, or regulations.

Principle Of Exceptions

A management principle emphasizing attention and resources on areas that deviate from the norm or expected results.

Standard Costs

Predetermined costs for products or services used to measure against actual costs for performance management and budgeting.

Actual Costs

The real expenses incurred during a specific period, as opposed to budgeted or estimated costs.