Flat Company Uses a Backflush-Costing System to Account for Bicycles

question 32

Multiple Choice

Flat Company uses a backflush-costing system to account for bicycles.Bicycles are scheduled for production only after orders are received 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.The standard cost for materials is $150 per bicycle.The standard cost for conversion costs is $75 per bicycle. During the current month,Flat Company purchased $9,000 of direct materials and incurred $5,300 in conversion costs to produce 40 bicycles.The journal entry to record the purchase of materials includes a debit to ________.

• A)Materials Inventory
• B)Work-in-Process Inventory
• C)Finished Goods Inventory
• D)Cost of Goods Sold

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Definitions:

Followership Process

The dynamics and behaviors of individuals in a subordinate role, focusing on how they contribute to the effectiveness of leadership and organizational objectives.

Partner Style

A leadership approach emphasizing collaboration, trust, and mutual respect between leaders and followers.

Exemplary Follower

An individual who actively supports their leader, contributes positively to the team's objectives, and demonstrates initiative, responsibility, and commitment.

Followership Theory

The study and understanding of the nature and role of subordinates in the leadership process, emphasizing their contribution to leadership success.