Answer the following questions using the information below:
Acme Inc.manufactures air compressors.For July there were no beginning inventories of direct materials,and no beginning or ending work-in-process.Only one indirect manufacturing cost category is currently in use,"Conversion Costs." Journal entries are recorded when materials are purchased and when units are transferred to finished goods inventory.Acme Inc.uses backflush costing.Variances are written off against Cost of Goods Sold when units are transferred to finished goods inventory.The following data pertains to July:

-Which of the following journal entries properly records Acme's direct material costs placed into production for the month of July?

Question

Answer the following questions using the information below:
Acme Inc.manufactures air compressors.For July there were no beginning inventories of direct materials,and no beginning or ending work-in-process.Only one indirect manufacturing cost category is currently in use,"Conversion Costs." Journal entries are recorded when materials are purchased and when units are transferred to finished goods inventory.Acme Inc.uses backflush costing.Variances are written off against Cost of Goods Sold when units are transferred to finished goods inventory.The following data pertains to July:
 
-Which of the following journal entries properly records Acme's direct material costs placed into production for the month of July?

Quizplus · Accepted Answer

Option B records the purchase of direct materials on account, which is the correct journal entry to record the direct material costs placed into production for the month of July. Option A records the purchase of indirect materials, option C records the conversion costs incurred, and options D and E are not relevant to direct material costs.

Answer the Following Questions Using the Information Below