Answer the following question(s)using the information below:
Complete Microfilm Products manufactures microfilm cameras.For October 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 sold using backflush costing.

-Which of the following entries would occur at Complete Microfilm Products if the only trigger point is the production of finished units?

Question

Answer the following question(s)using the information below:
Complete Microfilm Products manufactures microfilm cameras.For October 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 sold using backflush costing.
 
-Which of the following entries would occur at Complete Microfilm Products if the only trigger point is the production of finished units?

Quizplus · Accepted Answer

Since Complete Microfilm Products uses backflush costing, the only trigger point for journal entries is when finished units are produced. Option C shows the journal entry for the sale of finished units, which is the only entry that would be recorded in this scenario. Options A and B are for the purchase of materials, which is not a trigger point under backflush costing. Options D and E are for indirect manufacturing costs, but the question states that the only indirect cost category in use is "Conversion Costs."

Answer the Following Question(s)using the Information Below