Proration of Manufacturing Cost Variances Among Ending Inventories and Cost

Multiple Choice

Proration of manufacturing cost variances among ending inventories and cost of goods sold has the effect of carrying the cost (savings) of inefficient (efficient) operations of a period to:

A) Only the balance sheet of the current period.
B) Only the income statement of the current period.
C) The balance sheets of future periods only.
D) The income statement of the current period and the balance sheet of the current period.