Looker corporation uses a process costing system The company had $160.500 of beg

Question

Looker 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 goods completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry account for the cost of goods sold in October is: Debit Cost of Goods Sold $837,000. credit Finished Goods Inventory $837,000 Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300 Debit Finished Goods Inventory $837,000. credit Work in Process Inventory $837,000 Debit Finished Goods Inventory $158,200. credit Cost of Goods Sold $158 200 Debit Cost of Goods Sold $839,300. credit Finished Goods Inventory $839,300

Explanation / Answer

COmpute the cost of Goods Sold.

Cost of Goods sold = Beginning Inventory + Transferred Goods - CLosing INventory

= 160500+837000-158200 = $839,300.

Theerefore, the cost of goods sold is $839,300.

Journal Entry:

Date Account title and explanation Amount($) Amount($) Cost of Goods Sold 839300               Finished Goods Inventory 839300 To record the cost of Goods sold

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.