Answer the Following Questions Using the Information Below

question 6

Multiple Choice

Answer the following questions using the information below:
Acme Inc.manufactures air compressors.For July there were no beginning inventories of direct materials, and no beginning or ending work-in-process.Only one indirect manufacturing cost category is currently in use, "Conversion Costs." Journal entries are recorded when materials are purchased and when units are transferred to finished goods inventory.Acme Inc.uses backflush costing.Variances are written off against Cost of Goods Sold when units are transferred to finished goods inventory.The following data pertains to July:

-Which of the following journal entries properly reflects Acme's conversion costs allocated including the disposition of the variance?

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Time Value

The principle that having money now is more valuable than the same sum in the future because of its ability to earn more over time.

Money

A medium of exchange that facilitates the transfer of goods and services and serves as a measure of value and a store of wealth.

Interest

The cost of borrowing money or the payment received for the lending of resources, typically expressed as a percentage rate over a period of time.