Luker Corporation Uses a Process Costing System

question 102

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

---

Definitions:

Population

The entire pool from which a sample is drawn and that is the subject of statistical analysis.

Sample Mean

The average value found from a sample, which is a subset of a larger population.

Population

The entire group of individuals or instances about whom the study is focused, from which a sample may be drawn.

Sample Statistic

A numerical measurement describing a characteristic of a sample, used to estimate a population parameter.