Question

Luker Corporation uses a process costing system. The company had $174,500 of beginning Finished Goods Inventory on October 1. It transferred in $851,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $172,200. The entry to account for the cost of goods manufactured during October is:

Answer 1

See below

Step-by-step explanation:

Given:

Beginning finished goods inventory

$174,500

Add: transfer units completed during the period

$851,000

Less: Ending finished goods inventory

($172,200)

Cost of goods sold

$853,300

Journal entry

Cost of goods sold Dr $853,300

-------------- Finished goods Cr $853,300

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