Question

Luker Corporation uses a process costing system. The company had $166,500 of beginning Finished Goods Inventory on October 1. It transferred in $843,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $164,200. The entry to account for the cost of goods manufactured during October is___________.

Answer 1

Journal entry

Step-by-step explanation:

The journal entry is as follows

Finished goods inventory Dr $843,000

To Work in process $843,000

(Being the cost of goods manufactured is recorded)

Since we have to record the entry for cost of goods manufactured so we debited the finished goods inventory and credited the work in process and the amount should be equal to the transferred of units completed