Training Company uses a backflush-costing system to account for bicycles.Bicycles are scheduled for production only after orders are received and products are shipped to customers immediately upon completion.No finished goods inventory is maintained and product costs are applied directly to cost of goods sold.The standard cost for materials is $150 per bicycle.The standard cost for conversion costs is $75 per bicycle. During the current month,Training Company purchased $6,000 of direct materials and incurred $3,300 in conversion costs to produce 40 bicycles.The journal entry to apply costs to completed goods includes a debit to ________.
A)Finished Goods Inventory for $9,300
B)Work-in-Process Inventory for $9,000
C)Cost of Goods Sold for $9,300
D)Cost of Goods Sold for $9,000

Question

Quizplus · Accepted Answer

The Answer of Training Company uses a backflush-costing system to account for bicycles.Bicycles are scheduled for production only after orders are received and products are shipped to customers immediately upon completion.No finished goods inventory is maintained and product costs are applied directly to cost of goods sold.The standard cost for materials is $150 per bicycle.The standard cost for conversion costs is $75 per bicycle. During the current month,Training Company purchased $6,000 of direct materials and incurred $3,300 in conversion costs to produce 40 bicycles.The journal entry to apply costs to completed goods includes a debit to ________.
A)Finished Goods Inventory for $9,300
B)Work-in-Process Inventory for $9,000
C)Cost of Goods Sold for $9,300
D)Cost of Goods Sold for $9,000

Training Company Uses a Backflush-Costing System to Account for Bicycles