Games R Us manufactures various games. For March, there were no beginning inventories of direct materials and no beginning or ending work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.

Which of the following entries properly records the cost of goods sold for the month?

Question

Games R Us manufactures various games. For March, there were no beginning inventories of direct materials and no beginning or ending work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.

Which of the following entries properly records the cost of goods sold for the month?

Quizplus · Accepted Answer

(Conversion costs of $410,000 + Direct Materials Purchased of $1,130,000)/59,800 units produced x 49,800 units sold = $1,282,475.

Games R Us Manufactures Various Games