211.) A firm uses backflush costing and values inventory using direct costing. All actual amounts are equal to budgeted amounts. (Note that some of the amounts below are on a per unit basis.)

DM per unit - $1.50 DL per unit - $2.00 VOH per unit - $0.45 FOH per unit - $0.55 Total completed and in process - 15,000 units. Units in finished goods - 500 Units in process - 250

The firm counts raw materials at the end of the period and finds that $50 of raw materials are still in the warehouse.

Which journal entry appropriately backflushes costs to inventory accounts?

a. Debit: COGS $3,012.50 Credit: RIP $425 Credit: Conversion Costs $612.50 Credit: FG $1,975

b.Debit: COGS $3,375 Credit: RIP $375 Credit: Conversion Costs $750 Credit: FG $2,250

c.Debit: RIP $375 Debit: Conversion Costs $750 Debit: FG $2,250 Credit: COGS $3,375

d.Debit: RIP $425 Debit: Conversion Costs $612.50 Debit: FG $1,975 Credit: COGS $3,012.50