Games R Us manufactures various games. For March, there were no beginning inventories of direct materials and no beginning or en
ding work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. Conversion costs — March $ 400,000
Direct materials purchased — March $1,070,000
Units produced — March 58,800
Units sold — March 41,800
Which of the following journal entries properly records the purchase of direct materials?
A) Accounts Payable Control 1,070,000
Inventory: Raw and In-Process Control 1,070,000
B) Inventory: Raw and In-Process Control 1,070,000
Accounts Payable Control 1,070,000
C) Inventory: Raw and In-Process Control 1,070,000
Conversion Costs 1,070,000
D) Conversion Costs 1,070,000
Inventory: Raw and In-Process Control 1,070,000
<u>"You will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization." </u>
<u>Explanation:</u>
Remember, a rational decision-making process is one that is not based on emotions but on carefully considering the facts. In other words, it involves forming conclusions based on examined evidence, even if they go against our initially perceived outcome.
Therefore, in this case, you will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization.
Answer:<em> The correct option in this case is (c).</em><u><em> i.e. Economic profits induce firms to enter an industry and losses encourage firms to leave</em></u>
Economic profits is the difference between total revenues and total costs excluding opportunity cost.
For a instance when a firm generates economy profits then in that scenario it will be profitable to continue and expand .
As Martha has the main home in Houston and in the current year she rented it for only 10 days, this means that house is rented for less than 14 days and will be still treated as her personal residence, therefore, no deduction will be available for Martha against her rental income. Martha's Adjusted gross income will be increased by an amount of $5,000.