At the end of the accounting period,all variances are closed to the ________ account.
A)Work in Process
B)Finished Goods
C)Cost of Goods Manufactured
D)Cost of Goods Sold

Question

Quizplus · Accepted Answer

At the end of the accounting period, all variances (including those from Work in Process and Finished Goods) are closed to the Cost of Goods Sold account. This ensures that the actual cost of goods produced and sold is reflected in the financial statements. The Cost of Goods Manufactured account is used to accumulate the total cost of goods produced during the period, but it is not used to close variances.

At the End of the Accounting Period,all Variances Are Closed