A company employs a just-in-time (JIT) production system and utilizes back-flush accounting. All acquisitions of raw materials are recorded in a raw materials control account when purchased. All conversion costs are recorded in a control account as incurred, while the assignment of conversion costs are from an allocated conversion cost account. Company practice is to record the cost of goods manufactured at the time the units are completed using the estimated budgeted cost of the goods manufactured. The budgeted cost per unit for one of the company's products is as shown: Direct materials $15. 00 Conversion costs 35. 00 Total budgeted unit cost $50. 00 During the current accounting period, 80,000 units of product were completed, and 75,000 units were sold. The entry to record the cost of the completed units for the period would be which of the following?

Question 1C1-CQ02

Topic: Measurement Concepts

From the budgeted data shown, calculate the budgeted indirect cost rate that would be used in a normal costing system.

Total direct labor hours	250,000
Direct costs	$10,000,000
Total indirect labor hours	50,000
Total indirect labor-related costs	$5,000,000
Total indirect non-labor-related costs	$7,000,000

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Answer rating: 100% (QA)

SOLUTIONS Answer The entry to record the cost of the completed units for the period would be a Worki... View the full answer