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:

Myelin Sheath

A fatty material that covers and insulates some axons to allow for faster movement of electrical impulses along the axon.

Epinephrine

Epinephrine, also known as adrenaline, is a hormone and neurotransmitter involved in the body's fight-or-flight response, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.

Adrenaline Rush

A sudden increase in adrenal hormones in the body, typically in response to stress or threat, enhancing physical performance and awareness.

Neurotransmitter GABA

Gamma-aminobutyric acid, a key neurotransmitter in the brain that inhibits nerve transmission, calming nervous activity.