Games R Us Manufactures Various Games

question 29

Short Answer

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.

Which of the following journal entries properly records the purchase of direct materials?

---

Definitions:

Produced

The quantity of goods or services created by a business or production process within a certain period.

Actual Costs

The real costs incurred in the production, acquisition, or realization of goods and services, as opposed to estimated or standard costs.

Direct Materials Price Variances

The difference between the actual cost of direct materials and the standard cost, used to measure cost management efficiency.

Quantity Variances

Differences between the expected and the actual amount of materials, labor, or overhead used in production.