Use the Information Below to Answer the Following Question(s)

question 135

Multiple Choice

Use the information below to answer the following question(s) .
Fun 'N' Games manufactures various board games. For January 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 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:

Trade-offs

The idea of sacrificing one positive aspect or perk to obtain another that is considered to be more desirable.

Production Possibilities Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and current technology.

Efficient

Achieving maximum productivity with minimum wasted effort or expense; in economics, an allocation of resources in which it is impossible to make any one individual better off without making someone else worse off.

Inefficient

Refers to a situation where resources are not used in the most effective way, leading to waste or suboptimal outcomes.