In backflush costing,any remaining balance in the Conversion Costs account at the end of the accounting period is charged to ________.
A) Cost of Goods Sold
B) Work-in-Process Inventory
C) Finished Goods Inventory
D) Direct Materials Inventory

Question

Quizplus · Accepted Answer

In backflush costing, any remaining balance in the Conversion Costs account at the end of the accounting period is typically charged to Cost of Goods Sold. This method assumes that all costs should have been applied to products, and any leftover amounts are treated as costs of goods that have been sold.

In Backflush Costing,any Remaining Balance in the Conversion Costs Account