A large labor efficiency variance is prorated to which of the following at year-end?
WIP $ F G $
Cost of Goods Sold $\text {\underline{ Inventory} }$ $\text {\underline{ Inventory} }$

A)no no no
B)no yes yes
C)yes no no
D)yes yes yes

Question

A large labor efficiency variance is prorated to which of the following at year-end?
                                                  WIP               $ F G $
Cost of Goods Sold                $\text {\underline{  Inventory} }$     $\text {\underline{  Inventory} }$

A)no no no
B)no yes yes
C)yes no no
D)yes yes yes

Quizplus · Accepted Answer

A large labor efficiency variance at year-end is typically prorated among Work in Process (WIP) Inventory, Finished Goods (FG) Inventory, and Cost of Goods Sold (COGS) to accurately reflect the cost of labor in the products at their various stages of production and sale.

A Large Labor Efficiency Variance Is Prorated to Which of the Following