Use the information below to answer the following question(s).Roller Sports Ltd.manufactures various skateboards.For March 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.Following is financial information for March.
-Which of the following entries properly records the cost of goods sold for the month?

Question

Use the information below to answer the following question(s).Roller Sports Ltd.manufactures various skateboards.For March 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.Following is financial information for March. 
-Which of the following entries properly records the cost of goods sold for the month?

Quizplus · Accepted Answer

The cost of goods sold is calculated as the sum of direct materials used and conversion costs allocated. As there were no beginning inventories of direct materials and no beginning or ending work-in-process, the total conversion costs allocated for the month represent the conversion costs incurred in production of finished goods. Therefore, the journal entry that properly records the cost of goods sold for the month is the one that includes the total conversion costs allocated. Option B is the only one that meets this criterion.

Use the Information Below to Answer the Following Question(s)