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Luker Corporation uses a process costing system. The company had $171,500 of beginning Finished Goods Inventory on October 1. It transferred in $848,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $169,200. The entry to account for the cost of goods sold in October is:

Multiple Choice

• Debit Cost of Goods Sold $848,000; credit Finished Goods Inventory $848,000.

• Debit Cost of Goods Sold $850,300; credit Work in Process Inventory $850,300.

• Debit Finished Goods Inventory $848,000; credit Work in Process Inventory $848,000.

• Debit Finished Goods Inventory $169,200; credit Cost of Goods Sold $169,200.

• Debit Cost of Goods Sold $850,300; credit Finished Goods Inventory $850,300.

  Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $870 and sold them on credit to Percy Corporation for $1,215. The complete journal entry to be made by Wyman at the time of this sale is:

  Multiple Choice

• Debit Accounts Receivable $1,215; credit Sales $1,215; debit Cost of Goods Sold $870; credit Finished Goods Inventory $870.

• Debit Accounts Receivable $1,215; credit Sales $345; credit Finished Goods Inventory $870.

• Debit Cost of Goods Sold $1,215; credit Sales $1,215.

• Debit Finished Goods Inventory $870; debit Sales $1,215; credit Accounts Receivable $1,215; credit Cost of Goods Sold $870.

• Debit Accounts Receivable $1,215; debit Selling expense $870; credit Sales $1,215; credit Cost of Goods Sold $870.

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