Question
Stanford Inc., uses backflush costing. During a recent month, $50,000 of materials were purchased and $70,000 of conversion costs were incurred for production. Materials are
Stanford Inc., uses backflush costing. During a recent month, $50,000 of materials were purchased and $70,000 of conversion costs were incurred for production. Materials are acquired just in time for use in production orders. If goods are shipped to customers upon completion of production, _____.
Question 33 options:
materials and work-in-process accounts must be used to record production costs
Stanford Inc., uses backflush costing. During a recent month, $50,000 of materials were purchased and $70,000 of conversion costs were incurred for production. Materials are acquired just in time for use in production orders. If goods are shipped to customers upon completion of production, _____.
Question 33 options:
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materials and work-in-process accounts must be used to record production costs
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a finished-goods inventory account must be used to record the costs of finished goods, which are then transferred to cost of goods sold
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cost of goods sold could be charged directly with all production costs
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inventories will be so large that several work-in-process accounts must be used
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