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.

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Definitions:

Endocrine System

A communication system that uses hormones to influence mental activity and behavior.

Sexual Development

The process by which individuals reach sexual maturity and develop the physical characteristics of their gender and a sense of their sexual identity and orientation.

Parasympathetic

A component of the autonomic nervous system responsible for energy conservation by reducing the heart rate, enhancing activity in the intestines and glands, and loosening the sphincter muscles within the gastrointestinal tract.

Sympathetic

Part of the autonomic nervous system that prepares the body for 'fight or flight' responses, increasing heart rate and blood flow to muscles.