Asked by
Nita Dwi Safitri
on Oct 15, 2024Verified
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 $837,000; credit Finished Goods Inventory $837,000.
B) Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
C) Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
D) Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
E) Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
Finished Goods Inventory
The stock of completed products ready for sale at the end of an accounting period.
Cost of Goods Manufactured
The total production cost of goods completed during a specific period, including materials, labor, and overhead costs.
- Calculate the cost of goods manufactured, sold, and the ending inventory balance in a process costing system.
Verified Answer
DN
Learning Objectives
- Calculate the cost of goods manufactured, sold, and the ending inventory balance in a process costing system.
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