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 goods 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:

Question

Quizplus · Accepted Answer

The cost of goods sold is equal to the beginning finished goods inventory + goods transferred in during the period - ending finished goods inventory. Using the information given in the problem, we can calculate: Cost of Goods Sold = $160,500 + $837,000 - $158,200 = $839,300. Therefore, the entry to account for the cost of goods sold in October is: Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300. Option E is the only choice that matches this entry.

Luker Corporation Uses a Process Costing System