Luker Corporation Uses a Process Costing System

question 105

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

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