Luker Corporation Uses a Process Costing System

question 109

Multiple Choice

Luker Corporation uses a process costing system.The company had $160,500 of beginning Finished Goods Inventory on October 1.It transferred in $837,000 of units completed during the period.The ending Finished Goods Inventory balance on October 31 was $158,200.The entry to account for the cost of goods sold in October is:

• A)Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
• B)Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
• C)Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
• D)Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
• E)Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.

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Definitions:

Hybridization

A concept in chemistry that describes the mixing of atomic orbitals to form new hybrid orbitals that can accommodate the pairing of electrons to form bonds.

Central Carbon

The carbon atom in an organic molecule that is bonded to four different groups, making it a chiral or stereo center.

Heat Of Hydrogenation

The heat released during the hydrogenation process, which involves adding hydrogen to an organic compound, typically to convert unsaturated bonds to saturated ones.

Compound

A concoction formed through the chemical union of two or more elements in determined proportions.