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.

Question

Quizplus · Accepted Answer

The correct entry to account for the cost of goods manufactured (units completed) during October is to debit Finished Goods Inventory and credit Work in Process Inventory for the amount of $837,000. This entry moves the cost of completed goods from Work in Process Inventory to Finished Goods Inventory.

Luker Corporation Uses a Process Costing System