Answer the Following Questions Using the Information Below

question 17

Multiple Choice

Answer the following questions using the information below:
Games R Us manufactures various games. 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 materials are purchased and when conversion costs are allocated under backflush costing.

-Which of the following entries properly records the cost of goods sold for the month?

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Definitions:

Available-for-Sale Securities

Financial instruments that are not classified as held-for-trading or held-to-maturity, marked to market for financial reporting purposes.

Unrealized Increase/Decrease

Refers to the increase or decrease in the value of an asset or investment that has not been sold.

Fair Value

An impartial estimate of the market value of an asset or liability, based on current market prices.

Available-for-Sale

A classification for financial assets that are not to be held to maturity or for trading purposes, allowing for changes in value to be recorded in other comprehensive income.