Answer:
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
