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

question 156

Multiple Choice

Training 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,Training Company purchased $6,000 of direct materials and incurred $3,300 in conversion costs to produce 40 bicycles.The journal entry to apply costs 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:

Internal Reflection

A phenomenon where light wave strikes a medium boundary and is completely reflected back into the medium.

Photosensitive Cells

Cells that are sensitive to light, playing a key role in vision by converting light into signals that can be processed by the brain.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light into neural signals for vision.

Jellylike Material

A substance with a gelatinous texture, often used in various medical and biological contexts to describe the consistency of certain cellular components or materials.