Answer the Following Questions Using the Information Below:
Games R

question 2

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 following journal entries properly records the purchase of direct materials?

• A)\(\begin{array} { l }
• \text {Accounts Payable Control }&\$1,070,000 \\
• \text { Inventory: Raw and In-Process Control}&\$1,070,000 \\
• \end{array}\)
• B)\(\begin{array} { l }
• \text {Inventory: Raw and In-Process Control }&\$1,070,000 \\
• \text {Accounts Pavable Control}&\$ 1,070,000\\
• \end{array}\)
• C)\(\begin{array} { l }
• \text {Inventory: Raw and In-Process Control }&\$1,070,000 \\
• \text {Conversion Costs }&\$1,070,000 \\
• \end{array}\)
• D)\(\begin{array} { l }
• \text { Conversion Costs}&\$1,070,000 \\
• \text { Inventory: Raw and In-Process Control}&\$1,070,000 \\
• \end{array}\)

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Definitions:

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by delusions, hallucinations, and disordered thinking.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, impacting daily functioning.

Delusions

False beliefs that are maintained even though they clearly are out of touch with reality.

Hallucinations

Sensory perceptions that occur in the absence of a real external stimulus or that represent gross distortions of perceptual input.