Meadows Company sold 500 units of inventory at $25 per unit on account. The company uses the perpetual inventory system and the FIFO inventory costing method. The beginning inventory included 400 units at $15 per unit. The most recent purchases include 600 units at $18 per unit. Prepare the journal entries to record the sale. Omit explanations.

What will be an ideal response?




Sales Revenue = 500 units × $25 per unit = $12,500



Cost of Goods Sold = (400 units × $15 per unit) + (100 units × $18 per unit)

Cost of Goods Sold = $6,000 + $1,800

Cost of Goods Sold = $7,800

Business

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