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:

	materials and work-in-process accounts must be used to record production costs
	a finished-goods inventory account must be used to record the costs of finished goods, which are then transferred to cost of goods sold
	cost of goods sold could be charged directly with all production costs
	inventories will be so large that several work-in-process accounts must be used