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.