Reference no: EM132873186
Question - Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work-in-process. Only one indirect manufacturing cost category is currently in use, "Conversion Costs." Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.
Actual Conversion costs - January $400,000
Direct materials purchased - January $1,070,000
Units produced - January 58,800
Units sold - January 41,800
Which of the journal entries properly records the incurrence of conversion costs?
a. Cost of Goods Sold 400,000
Conversion Costs 400,000
b. Conversion Costs 400,000
Various accounts 400,000
c. Inventory: Direct Materials 400,000
Conversion Costs 400,000
d. Conversion Costs 400,000
Inventory: Direct Materials 400,000
e. Various accounts 400,000
Conversion Costs 400,000