A large labor efficiency variance is prorated to which of the following at year-end? $\begin{array}{lll}
&\text{WIP}&\text{FG}\
\underline{\text{Cost of GoodsSold}}&\underline{\text{Inventory}}&\underline{\text{Inventory}}
\end{array}$
A)no no no
B)no yes yes
C)yes no no
D)yes yes yes

Question

Quizplus · Accepted Answer

The labor efficiency variance is prorated to both WIP and FG inventory at year-end because it is a production variance that affects the cost of both WIP and FG.

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