Chapter D, Problem 5QS

To determine

Concept Introduction:

• The Lean Accounting:

  The Lean Accounting implies the numerical and the mathematical parts of the inventory and manufacturer indirect costs in the decision making for the proper control and measurements of financial aspects in the business.

• Journal Entry:

  The Journal Entry is the systematic records of the happenings of transaction in the Business.

• Cost of goods sold:

  The Cost of goods sold measures the production of goods or services produced and had been sold in accordance to its capacity.

The formula is,

  $\text{Cost of goods sold= Beginning Inventory + Purchases during the period – Ending Inventory}$

$\text{Cost of goods sold= Beginning Inventory + Purchases during the period – Ending Inventory}$

To pass the Journal Entry