Question

Luker Corporation uses a process costing system The company had $ 172,500 of beginning Finished Goods Inventory on October 1. It transferred in $ 849,000 of units completed during the period . The ending Finished Goods Inventory balance on October 31 was $ 170,200 . The entry to account for the cost of goods sold in October is

Answer 1

First calculate the Cost of Goods sold:

= Opening Finished goods inventory + Goods transferred in - Closing finished goods inventory

= 172,500 + 849,000 - 170,200

= $851,800

The entry to record this is:

Date Account Title Debit Credit

October 31 Cost of Goods Sold $851,800

Finished Goods Inventory $851,800