Question

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

Answer 1

Answer and Explanation:

The journal entry for the cost of goods manufactured is shown below:

Finished Goods Inventory $837,000

To Work in process $837,000

(Being cost of goods manufactured)

Here the finished goods inventory is debited as it increased the assets and credited the work in process as it decrease the assets