Which of the following accounts could be affected by the closing entry for a significant variance?
A) Wages Payable
B) Work in Process
C) Finished Goods
D) Cost of Goods Sold
E) Three of the above

Question

Quizplus · Accepted Answer

Some companies write off variances to Cost of Goods Sold. Others allocate variances across Work in Process, Finished Goods, and Cost of Goods Sold. Thus, these three accounts could possibly be included in the entry.

Which of the Following Accounts Could Be Affected by the Closing