Question

Luker Corporation uses a process costing system. The company had $177,500 of beginning Finished Goods Inventory on October 1. It transferred in $854,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $175,200. The entry to account for the cost of goods sold in October is:]

Answer 1

Answer:

Dr Cost of goods sold 856,300

    Cr Finished goods inventory 856,300

Explanation:

we must first determine the value of the total goods manufactured:

beginning inventory of finished goods + finished goods = $177,500 + $854,000 = $1,031,500

the cost of goods sold = total goods manufactured - ending finished goods = $1,031,500 - $175,200 = $856,300

Dr Cost of goods sold 856,300

    Cr Finished goods inventory 856,300