Answer the Following Questions Using the Information Below:
Games R

question 83

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.
$\begin{array}{lr}\text { Conversion costs - March } & \$ 400,000 \\\text { Direct materials purchased - March } & \$ 1,070,000 \\\text { Units produced - March } & 58,800 \\\text { Units sold - March } & 41,800\end{array}$
-Which of the journal entries properly records conversion costs?

• A) \(\begin{array} { l }
• \text {Conversion Costs }&400,000\\
• \text {Various Accounts }&400,000 \\
• \end{array}\)
• B) \(\begin{array} { l }
• \text { Various Accounts}&400,000 \\
• \text { Conversion Costs }&400,000 \\
• \end{array}\)
• C) \(\begin{array} { l }
• \text {Conversion Costs }&400,000\\
• \text {Inventory: Direct Materials }&400,000 \\
• \end{array}\)
• D) \(\begin{array} { l }
• \text {Inventory: Direct Materials }&400,000\\
• \text {Conversion Costs }&400,000 \\
• \end{array}\)

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