q 34

Black Thumb Inc manufactures gardening equipment For April there were no beginning inventories of direct materials, and no beginning or ending work-in-process Black Thumb uses JIT production system and backflush costing Journal entries are recorded when materials are purchased and when units are transferred to finished goods inventory Variances are written off against Cost of Goods Sold when units are transferred to finished goods inventory. The following data pertains to April: Conversion costs - April Direct materials purchased - April Units produced - April Units sold - April Direct materials variance Conversion cost variance $380,000 $680 000 50.000 42 000 $30,000 Unfavourable $20,000 Favourable Which of the following journal entries properly reflects Black Thumb's conversion costs allocated including the disposition of the variance? OA. 380,000 Conversion Costs Allocated Conversion Costs Control 380,000 OB. 380,000 Conversion Costs Control Conversion Costs Allocated 380,000 OC. 400,000 Conversion Costs Allocated Cost of Goods Sold Conversion Costs Control 20,000 380,000 OD Conversion Costs Allocated Cost of Goods Sold Conversion Costs Control 300,000 50,000 350 000 Click to select your answer OE. 350,000 Conversion Costs Allocated Cost of Goods Sold Conversion Costs Control 380,000 20,000 400,000 400,000