Answer the following question(s)using the information below:
Complete Microfilm Products manufactures microfilm cameras.For October 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 units are sold using backflush costing.
-Which of the following entries would occur at Complete Microfilm Products if the only trigger point is the production of finished units?

Question

Answer the following question(s)using the information below:
Complete Microfilm Products manufactures microfilm cameras.For October 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 units are sold using backflush costing. 
-Which of the following entries would occur at Complete Microfilm Products if the only trigger point is the production of finished units?

Quizplus · Accepted Answer

The trigger point for journal entries is the production of finished units, which means that the journal entry would occur when the finished units are produced. Option C is the only one that represents the cost of production of finished units. Option A is for the purchase of raw materials, Option B is for the allocation of conversion costs, Option D is for the sale of finished units, and Option E is for the purchase of indirect materials.

Answer the Following Question(s)using the Information Below