Question

Luker corporation uses a process costing system. the company had $160,500 of beginning finished goods inventory on october 1. luker completed and transferred to finished goods a total of $837,000. 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:

Answer 1

Given:
FG, beginning                                    160,500
Add: completed and transferred:   837,000
                                                                997,500
Less: FG, ending                                158,200
Cost of goods sold                              839,300


                                                       Debit              Credit
Cost of Goods sold                   839,300
                  Finished goods                               839,300

Cost of goods sold is only recorded when sales of the products are made.