At the end of a period,a significant material quantity variance should be
A)closed to Cost of Goods Sold.
B)allocated among Raw Material,Work in Process,Finished Goods,and Cost of Goods Sold.
C)allocated among Work in Process,Finished Goods,and Cost of Goods Sold.
D)carried forward as a balance sheet account to the next period.

Question

Quizplus · Accepted Answer

A significant material quantity variance should be allocated among Work in Process, Finished Goods, and Cost of Goods Sold. This is because the variance represents the difference between the actual quantity of material used versus the standard quantity, therefore it affects inventory values in both manufacturing stages (WIP and Finished Goods) as well as COGS.

At the End of a Period,a Significant Material Quantity Variance