The following inventory transactions apply to Green Company for Year 2:

Jan. 1	Purchased	290	units	@	$	10
Apr. 1	Sold	145	units	@	$	20
Aug. 1	Purchased	440	units	@	$	11
Dec. 1	Sold	550	units	@	$	21

The beginning inventory consisted of 175 units at $11 per unit. All transactions are cash transactions.

Required: a. Record these transactions in general journal format assuming Green uses the FIFO cost flow assumption and keeps perpetual records.

1. Record entry inventory purchased for cash.

2. Record sale of inventory for cash.

3. Record entry for cost of goods sold.

4. Record entry inventory purchased for cash.

5. Record sale of inventory for cash.

6. Record entry for cost of goods sold.

Record entry inventory purchased for cash.

b. Compute cost of goods sold for year 2.

Transcribed Image Text:

Date 01/01 Record entry General Journal Clear entry Debit Credit View general Journal Date 01/01 Record entry General Journal Clear entry Debit Credit View general Journal

Answer rating: 100% (QA)

a 1Jan Merchandise inventory 2900 29010 Cash 2900 1Apr Cash 2900 1452... View the full answer