Answer the Following Questions Using the Information Below:
Vision Company

Multiple Choice

Answer the following questions using the information below:
Vision Company manufactures digital cameras. For May, there were no beginning inventories of direct materials and no beginning or ending work-in -process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when units are sold.
$\begin{array}{lr}\text { Conversion costs - May } & \$ 100,625 \\\text { Direct materials purchased - May } & \$ 253,575 \\\text { Units produced - May } & 80,500 \text { units } \\\text { Units sold - May } & 77,500 \text { units } \\\text { Selling price } & \$ 20 \text { each }\end{array}$
-Which of the following journal entries would be recorded when units are sold for the month under backflush costing? ?

A) $\begin{array} { l } \text {Cost of Goods Sold }&\$341,000 \\ \text { Inventory: Raw and In-Process}&\$341,000 \\\end{array}$

B) $\begin{array} { l } \text {Cost of Goods Sold }&\$341,000 \\ \text { Inventory Control }&\$244,125 \\ \text {Conversion Costs Allocated }&\$96,875 \\\end{array}$

C) $\begin{array} { l } \text {Inventory Inventory Control }&\$244,125 \\ \text { Conversion Costs Allocated }&\$96,875 \\ \text {Cost of Goods Sold }&\$341,000 \\\end{array}$

D) $\begin{array} { l } \text { Cost of Goods Sold}&\$ 354,200\\ \text {Inventory: Raw and In-Process }&\$253,575\\ \text {Conversion Costs Allocated }&\$96,875 \\\end{array}$