Luker Corporation Uses a Process Costing System

question 8

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 manufactured during 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.

---

Definitions:

1950s

A decade marked by post-World War II recovery, cultural change, and significant technological progress in many countries.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key indicator of economic health.

Labor Force

The total number of people both employed and actively seeking employment in an economy.

Labor Force Participation Rate

The labor force as a percentage of the adult population.