Under a Backflush Accounting System,the Following Entry Is Made When

question 27

Multiple Choice

Under a backflush accounting system,the following entry is made when products are completed:

• A)Debit-Finished Goods Credit-Work In Process
• B)Debit-Cost of Goods Sold Credit-Raw and In Process
• Credit-Conversion Costs
• C)Debit-Finished Goods Credit-Raw and In Process
• Credit-Conversion Costs
• D)Debit-Cost of Goods Sold Credit-Finished Goods

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Definitions:

Total Variable Cost

the overall cost that varies directly with the level of production or output.

TC

Typically refers to "Total Cost," which is the complete cost of production including both fixed and variable costs.

Average Fixed Costs

The fixed costs of production (such as rent and salaries) divided by the quantity of output produced.

Average Total Costs

The overall expense of creating goods divided by the number of items produced.