Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Luker Corporation uses a process costing system. The company had $168,500 of beg

ID: 2393970 • Letter: L

Question

Luker Corporation uses a process costing system. The company had $168,500 of beginning Finished Goods Inventory on October 1. Luker completed and transferred to finished goods a total of $845,000. The ending Finished Goods Inventory balance on October 31 was $166,200. The entry to account for the cost of goods manufactured during October is: Multiple Choice Debit Cost of Goods Sold $845,000. credit Finished Goods Inventory $845.000 Debit Cost of Goods Sold $847300, credit Work in Process Inventory $847.300 Debit Finished Goods Inventory $845.000 credit Work in Process Inventory $845.000 Debit Finished Goods Inventory $166,200, credit Cost of Goods Sold $166.200 Debit Cost of Goods Sold $847,300, credit Finished Goods Inventory $847,300

Explanation / Answer

1.

Option C is correct. Debit finished good inventory and credit work in progress inventory account.

2.

Option D is correct. 187600 Units

During the year completed = 173000

+ equ closing stock = 20000*73% i.e. 14600

___________________________________________

Total = 187600

3.

Option C is correct.

Weighted average direct material per unit = $253000 + $93500 / 25000+110000+30000

= $2.1 per equ unit

4.

Option B is correct. (97000 & 10000)

Assuming that $10000 will be entirely charged to Assambly department.