Perpetual inventory system
· Two journal entries would be made; one for the sale of 4 washing machines and one for the transfer of cost from inventory account to cost of goods sold account: * Cost of 4 machines sold: [ (475 × 10 machines) + 420 expenses]/10 = 517 per machine. 517 × 4 machines = 2,068. To summarize the events of increase and decrease in the cost of ...