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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Luker Corporation Uses a Process Costing System