Diamond Corporation uses a process costing system. The company had $ 163500 of beginning Finished Goods Inventory on October 1.
It transferred in $840,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $161,200.
The entry to account for the cost of goods sold in October is:
A. Debit Cost of Goods Sold $840,000; credit Finished Goods Inventory $ 840,000
B. Debit Cost of Goods Sold $842,300; credit Work in Process Inventory $ 842,300
C. Debit Finished Goods Inventory $ 840,000; credit Work in Process Inventory $ 840,000
D. Debit Finished Goods Inventory $ 161,200; credit Cost of Goods Sold $ 161,200
E. Debit Cost of Goods Sold $ 842,300; credit Finished Goods Inventory $ 842,300