If the Two Trigger Points Are Completion of Good Finished

question 54

Multiple Choice

If the two trigger points are completion of good finished units of product and sale of finished goods,which of the following entries would be used to record cost of finished units completed under backflush costing?

• A)\(\begin{array} { l }
• \text {Finished Goods }&\$ 341,000\\
• \text { Inventory Control}&\$ 244,125\\
• \text {Contersion Costs Allocated }&\$96,875 \\
• \end{array}\)
• B)\(\begin{array} { l }
• \text {Finished Good }&\$ 354,200\\
• \text {Inventory: Raw Materials }&\$253,575 \\
• \text {Conwersion Costs allocated }&\$100,625 \\
• \end{array}\)
• C)\(\begin{array} { l }
• \text {Finished Goods }&\$354,200 \\
• \text {Accounts Payable Control }&\$253,575 \\
• \text {Conversion Costs Allocated }&\$100,625 \\
• \end{array}\)
• D)\(\begin{array} { l }
• \text {Inventory Inventory Control }&\$244,125 \\
• \text { Conversion Costs Allocated }&\$96,875 \\
• \text {Finished Good }&\$341,000 \\
• \end{array}\)

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, represented as an asset on the balance sheet.

Unearned Revenues

Liabilities recognized when a company receives payment for goods or services yet to be delivered or performed.

Debit

An accounting entry that results in either an increase in assets or expenses or a decrease in liabilities, equity, or income.

Credit

The provision of resources (like money) by one party to another, where repayment is expected in the future, often with interest.