I was struggling to find the correct combination of accounts to use in these two journal entries. Note 2 states that we need to approach number 5 in FIFO, and don't know how to interpret this question in terms of what they're asking for other than COGS. Number 6 just needs a better wording because I am not understanding what they're trying to ask me to do from what is given.

2. In general, inventories are stated at full cost utilizing First-in-First-Out flow methods. Work- In-Process and Finished Goods are costed at direct materials plus factory labor (thus factory labor is included in the cost of manufactured inventory). The Company does not allocate any overhead to these accounts. This is non-standard accounting but is done in this practice set as a simplification. 5. The cost of making a widget this current year is $24 per widget. The Finished-Goods Inventory has a beginning layer of 100,000 units which cost $22 per widget to make. Record cost of goods sold relating to transaction 1. See accounting policy #2. 6. Payments were made on account to the Company (cash received as payment on credit sales) to the amount of $19,500,000. How could this be more than credit sales? Current Year Transactions Make journal entries for the following transactions. Unrealistically, the Company has made no journal entries since closing the books at the end of the prior year. Note: The journal entries are not necessarily listed in chronological order in which the transactions occurred. 1. Purchases of $12,000,000 of Raw-Materials Inventory were made during the current year. The entire $12,000,000 was charged to Accounts-Payable