question archive There are no beginning finished goods inventory in the month of October
There are no beginning finished goods inventory in the month of October
Subject:AccountingPrice:2.84 Bought3
There are no beginning finished goods inventory in the month of October. During October, Malik Inc. transferred Rs. 225,000 from Work in Process to Finished Goods and then shipped all finished goods to customer at 25% above cost. What would be the amount of Cost of Goods Sold at the debit side of journal entry:
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer: Cost of goods sold = Rs. 225,000
Sales Revenue = Rs. 225,000 x 25% of Rs. 225,000 = Rs. 247,500
Journal Entry
Cash/Account Receivable Account Dr. Rs. 247,500
To Sales Account Rs. 247,500
(Being sales made)
Profit and Loss Account Dr. Rs. 225,000
To Cost of Goods Sold Account Rs. 225,000
(Being cost of goods sold transferred to profit & loss account)
