Question

The following inventory transactions apply to Green Company for Year 2: Jan. 1 Apr. i Aug. 1 Dec. 1 Purchased Sold Purchased Sold 260 units @ $ 11 130 units @ $ 20 360 units @ $ 12 450 units @ $ 21 The beginning inventory consisted of 175 units at $12 per unit. All transactions are cash transactions. Required a. Record these transactions in general journal format assuming Green uses the FIFO cost flow assumption ar records. (If no entry is required for a transaction/event, select "No journal entry required" in the first accou & Answer is complete but not entirely correct.

Answer 1

FIFO Method : Requirement B Date Activity Beginning Inventory 01-Jan Purchase 01-Aug Purchase No of units Unit cost 175 $ 12.00 260 $ 11.00 360 $ 12.00 Total Cost $ 2,100.00 $ 2,860.00 $ 4,320.00 Cost of goods available for sale $ 9,280.00 Cost of goods sold 580 units : 175 units @ $12 260 units @ $11 145 units $12 $ $ $ 2,100.00 2,860.00 1,740.00 Cost of goods sold for Year 2 $ 6,700.00 Note : FIFO Method Assumes that Goods which are purchased first will be sold First, so in Ending inventory units will be there which are purchased last. The Above is the Calculation of Total cost of goods sold Requirement A Journal entry 6 But Here Requirement is, only cost of goods sold for the sale of 450 units. 45 units @ $12 260 units @ $11 145 units @ $12 $ $ $ 540.00 2,860.00 1,740.00 Cost of goods sold $ 5,140.00 12/1b $ 5,140.00 Cost of goods sold Inventory $ 5,140.00 (To Record cost of goods sold)