Training Company Uses a Backflush-Costing System to Produce Bicycles

question 79

Multiple Choice

Training Company uses a backflush-costing system to produce bicycles.Bicycles are scheduled for production only after orders are recorded, 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.Standard cost for materials and conversion is $150 and $75, respectively. During the current month, Training Company purchased $6,000 of direct materials and incurred $3,300 in conversion cost to produce 40 units.The entry to apply cost 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

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Definitions:

Yards

A unit of length in the imperial and US customary systems, equal to 3 feet or 0.9144 meters.

Dimensional Analysis

The technique of applying conversion factors to express quantities in different units, often used in physics and engineering contexts.

Arithmetic

The branch of mathematics dealing with the properties and manipulation of numbers, including addition, subtraction, multiplication, and division.

Ounces

A unit of weight in the avoirdupois system equal to 1/16th of a pound or approximately 28.35 grams.