During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The journal entry to record the sale would include which of the following? Cost of Goods Sold 360,000

Finished Goods 360,000

The journal entry would include the entry to record for the Cost of goods Sold of $360,000

Explanation:

A journal is a detailed record of all the financial transactions made during a specified period. The journal records are always transferred to the general ledger record. The common features of a journal entry is to enter the date that the financial transaction took place and the associated financial amount that was involved. The financial amount involved is usually utilizes a double entry bookkeeping method. Journals provide physical evidence that a certain transaction took place. The records can be in the form of a book, spread sheet or any form of accounting software. A person charged with the responsibility of keeping journal records is known as a bookkeeper. The bookkeeper generally records the amount of money earned by the company in the form of income and the expenditures.

In the case of Grey Company, the journal entry required would be the Cost of Good Sold being $360,000. The cost of goods sold can be defined as the direct costs that go into the production of goods an services. For example;

Cost of Goods Sold in Grey's Company=Unit cost*number of units sold

where;

Cost of Goods Sold in Grey's Company=unknown, to be determined

Unit cost=60,000 units

number of units sold=$6

replacing;

Cost of Goods Sold in Grey's Company=60,000*6=$360,000

Cost of Goods Sold=$360,000