Dolls "R" Us manufactures children's plastic dolls. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Journal entries are recorded when materials are purchased and when conversion costs are allocated at the end of the manufacturing process using backflush costing. Since February is the first month of the fiscal year, all actual costs are as budgeted. Additional information for the month is as follows:
There were no variances during the month.
Required:
a. Record the journal entry for the purchase of direct materials.
b. Record the journal entry for actual conversion costs.
c. Record the journal entry for finished goods for the month.
d. Record the journal entry for the costs of goods sold for the month.

Question

Dolls "R" Us manufactures children's plastic dolls. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Journal entries are recorded when materials are purchased and when conversion costs are allocated at the end of the manufacturing process using backflush costing. Since February is the first month of the fiscal year, all actual costs are as budgeted. Additional information for the month is as follows:
   There were no variances during the month.
Required:
a. Record the journal entry for the purchase of direct materials.
b. Record the journal entry for actual conversion costs.
c. Record the journal entry for finished goods for the month.
d. Record the journal entry for the costs of goods sold for the month.

Quizplus · Accepted Answer

The Answer of Dolls "R" Us manufactures children's plastic dolls. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Journal entries are recorded when materials are purchased and when conversion costs are allocated at the end of the manufacturing process using backflush costing. Since February is the first month of the fiscal year, all actual costs are as budgeted. Additional information for the month is as follows:
   There were no variances during the month.
Required:
a. Record the journal entry for the purchase of direct materials.
b. Record the journal entry for actual conversion costs.
c. Record the journal entry for finished goods for the month.
d. Record the journal entry for the costs of goods sold for the month.

Dolls "R" Us Manufactures Children's Plastic Dolls