Healthy Connection Company Uses a Backflush-Costing System to Account for Bicycles.Bicycles

question 105

Multiple Choice

Healthy Connection Company uses a backflush-costing system to account for bicycles.Bicycles are scheduled for production only after orders are received and products are shipped to customers immediately upon completion.No Finished Goods Inventory is maintained and product costs are applied directly to Cost of Goods Sold.The standard cost for materials is $150 per bicycle.The standard cost for conversion costs is $75 per bicycle.
During the current month,Healthy Connection Company purchased $6,000 of direct materials and incurred $3,000 in conversion costs to produce 40 bicycles.When production is complete,the journal entry has a Debit to ________.

• A) Finished Goods Inventory for $9,000
• B) Conversion Costs for $9,000
• C) Cost of Goods Sold for $9,000
• D) No entry is needed

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Definitions:

NANDA-I

An organization (North American Nursing Diagnosis Association International) that develops, publishes, and promotes standardized nursing diagnostic terminology.

Little Research

Referring to topics or areas in which minimal scientific studies or comprehensive investigation has been conducted.

Decisional Conflict

A state of uncertainty about which course of action to take when choices among competing actions involve risk, loss, or challenge to personal values.

Unclear Personal Values

A lack of clarity or confusion about one's own principles or standards of behavior which guide decisions and actions.