In backflush costing, any remaining balance in the conversion costs account at the end of an accounting period is charged to:
A) Work- in- Process Inventory
B) Finished- Goods Inventory
C) Cost of Goods Sold
D) Cost of Goods Sold, WIP Inventory, and Finished- Goods Inventory proportionately

Question

Quizplus · Accepted Answer

In backflush costing, the remaining balance in the conversion costs account is typically charged to Cost of Goods Sold, as it is a simplified costing method that aims to minimize the tracking of costs through inventory accounts.

In Backflush Costing, Any Remaining Balance in the Conversion Costs