Given the following account balances at the end of the first year of operations: $$\begin{array} { l c }
\text { Work in process inventory } & \$ 90,000 \
\text { Finished goods inventory } & 165,000 \
\text { Cost of goods sold } & 495,000 \
\text { Direct labour price variance } & 35,000 \mathrm { U } \
\text { Direct labour efficiency variance } & 17,000 \mathrm {~F}
\end{array}$$ Assuming that variances are considered material, the entry and amount of direct labour variances allocated to the Finished Goods Inventory is:
A) Credit $3,740
B) Debit $2,160
C) Credit $770
D) Debit $3,960

Question

Given the following account balances at the end of the first year of operations: $$\begin{array} { l c } 
\text { Work in process inventory } & \$ 90,000 \
\text { Finished goods inventory } & 165,000 \
\text { Cost of goods sold } & 495,000 \
\text { Direct labour price variance } & 35,000 \mathrm { U } \
\text { Direct labour efficiency variance } & 17,000 \mathrm {~F}
\end{array}$$ Assuming that variances are considered material, the entry and amount of direct labour variances allocated to the Finished Goods Inventory is:
A) Credit $3,740
B) Debit $2,160
C) Credit $770
D) Debit $3,960

Quizplus · Accepted Answer

The Answer of Given the following account balances at the end of the first year of operations: $$\begin{array} { l c } 
\text { Work in process inventory } & \$ 90,000 \
\text { Finished goods inventory } & 165,000 \
\text { Cost of goods sold } & 495,000 \
\text { Direct labour price variance } & 35,000 \mathrm { U } \
\text { Direct labour efficiency variance } & 17,000 \mathrm {~F}
\end{array}$$ Assuming that variances are considered material, the entry and amount of direct labour variances allocated to the Finished Goods Inventory is:
A) Credit $3,740
B) Debit $2,160
C) Credit $770
D) Debit $3,960

Given the Following Account Balances at the End of the First