In backflush costing, the journal entry to record the cost of goods sold during the period would include a
A) debit to Finished Goods Inventory.
B) debit to Conversion Costs.
C) credit to Work-in-process.
D) debit to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

In backflush costing, when the finished goods are produced and shipped, the cost is immediately charged to the Cost of Goods Sold account. Hence, the journal entry to record the cost of goods sold during the period would include a debit to the Cost of Goods Sold account.

In Backflush Costing, the Journal Entry to Record the Cost