Answer the Following Question(s)using the Information Below

question 98

Multiple Choice

Answer the following question(s) using the information below.Walton Industries uses backflush costing.For March, there were no beginning inventories of direct materials and no beginning or ending work-in-process.Conversion costs is the only indirect manufacturing cost category currently used.Journal entries are recorded when actual costs are incurred, at completion of finished goods, and at sale of finished goods, under backflush costing.
-Which of the following journal entries properly records the purchase of direct materials at Walton Industries?

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Definitions:

Risk-free Asset

An investment with a guaranteed return and no chance of default, such as government bonds.

Risk Aversion

The preference to avoid risk, where investors require higher returns to compensate for higher risk.

Expected Returns

The average of all possible returns for an investment, weighted by the likelihood of each outcome.

Standard Deviations

A statistical measure indicating the amount of variation or dispersion from the average or expected value, widely used in finance to assess investment risk.