The Following Information Relates to Wells Fargo for July 2008

question 22

Multiple Choice

The following information relates to Wells Fargo for July 2008:
Assuming underapplied or overapplied overhead is transferred to cost of goods sold at the end of the period, which of the following would be the entry to the cost of goods sold account?

• A) $80 000 debit
• B) $80 000 credit
• C) $40 000 credit
• D) $40 000 debit

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Definitions:

Segment Reporting

The practice of breaking down financial reports into divisions, product lines, or geographical markets to provide detailed financial information.

Accounting Standards

Guidelines and rules established by accounting organizations for preparing and reporting financial statements.

International Financial Reporting Standards

A set of accounting standards and guidelines developed and maintained by the International Accounting Standards Board (IASB) that is used internationally to ensure financial statements are transparent, comparable, and consistent.

U.S. GAAP

United States Generally Accepted Accounting Principles, a set of rules and standards for financial accounting and reporting in the U.S.