Question

Luker Corporation uses a process costing system. The company had $164,500 of beginning Finished Goods Inventory on October 1. It transferred in $841,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $162,200.

The entry to account for the cost of goods manufactured during October is:

Answer 1

Answer:

Debit Cost of Goods Sold $843,300

Credit Finished Goods Inventory $843,300

Explanation:

Luker Corporation entry to account for the cost of goods manufactured during October is:

Debit Cost of Goods Sold $843,300

Credit Finished Goods Inventory $843,300

Cost of Goods Sold = Beginning FG + cost of goods manufactured - Ending

FG $164,500 + 841,000 - 162,200 = $843,300