On May 10, Hudson Computing sold 140 Millennium laptop computers to Apex Publishers. At the date of this sale, Hudson's perpetual inventory records included the following cost layers for the Millennium laptops: Purchase Date April 9 May 1 Total on hand b. Average-cost method. c. FIFO method. d. LIFO method. Required: Prepare journal entries to record the cost of the 140 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list a. Specific identification method (83 of the units sold were purchased on April 9, and the remaining units sold were purchased on May 1). Journal entry worksheet < Quantity 90 60 150 1 2 Transaction a. 3 Note: Enter debits before credits. Unit Cost $ 1,500. $ 1,600 4 Record the cost of 140 Millennium computers sold to Apex Publishers under Specific identification method. Total Cost $ 135,000 96,000 $ 231,000 General Journal Debit Credit

On May 10, Hudson Computing sold 140 Millennium laptop computers to Apex Publishers. At the date of this sale, Hudson's perpetual inventory records included the following cost layers for the Millennium laptops: Purchase Date April 9 May 1 Total on hand b. Average-cost method. c. FIFO method. d. LIFO method. Required: Prepare journal entries to record the cost of the 140 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list a. Specific identification method (83 of the units sold were purchased on April 9, and the remaining units sold were purchased on May 1). Journal entry worksheet < Quantity 90 60 150 1 2 Transaction a. 3 Note: Enter debits before credits. Unit Cost $ 1,500. $ 1,600 4 Record the cost of 140 Millennium computers sold to Apex Publishers under Specific identification method. Total Cost $ 135,000 96,000 $ 231,000 General Journal Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Boxwood Company sells blankets for $33 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 28 $10 10 Sale 11 17 Purchase 26 $12 20 Sale 20 23 Sale 2 30 Purchase 35 $13 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
During the year, Wright Company sells 495 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Number of Unit Date January 1 May 5 Transaction Units Cost Total Cost Beginning inventory 60 $69 $4,140 Purchase 265 72 19,080 November 3 Purchase 215 77 16,555 540 $39,775 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. Cost of Goods Available for Sale Cost of Goods Sold LIFO Number Cost per of units unit Beginning Inventory 60 $ 69 $ Cost of Goods Available for Sale 4,140 Number of units Cost per Cost of Goods unit Number Sold of units Ending Inventory Cost per unit Ending Inventory $ 0 Purchases: May 5 265 $ 72 19,080 0 November 3 215 $ 77 16,555 0 Total 540 $ 39,775 $ 0 0 $ 0
GameGirl, Incorporated, has the following transactions during August. August 6 Sold 60 handheld game devices for $150 each to DS Unlimited on account, terms 3/10, net 60. The cost of the 60 game devices sold was $130 each. August 10 DS Unlimited returned four game devices purchased on August 6 since they were defective. August 14 Received full amount due from DS Unlimited. Required:Prepare the transactions for GameGirl, Incorporated, assuming the company uses a perpetual inventory system. The items returned on August 10 were considered worthless to GameGirl and were discarded. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
The Boxwood Company sells blankets for $36 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 8 $19 10 Sale 5 17 Purchase 10 $17 20 Sale 5 23 Sale 3 30 Purchase 11 $24 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method. a.$85 b.$51 c.$264 d.$95
Enrail Ski Company’s inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. (I have the answers for #1 and #2, but I need the calculations for #3.Please show ALL work.) Required: 1. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January Year 1? Why? Which method will result in the highest ending inventory balance? Why? 2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. 3. Now assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $74, and the inventory purchased on January 21 had a unit cost of $68. All other information is the same. Repeat requirements 1 and 2 Beginning inventory, January 1, year 1 840 units @ $85 each Purchases: January 15 1,000 units @ $94 each January 21 2,350 units @ $106 each Sales: January 5 575 units @ $110 each January 22 1,250 units…
Lamprino Appliance uses a perpetual inventory system. The following are three recent merchan-dising transactions: June 10 Purchased 10 televisions from Mitsu Industries on account. Invoice price, $300 perunit, for a total of $3,000. The terms of purchase were 2/10, n/30.June 15 Sold one of these televisions for $450 cash.June 20 Paid the account payable to Mitsu Industries within the discount period.Instructionsa. Prepare journal entries to record these transactions assuming that Lamprino records purchasesof merchandise at:1. Net cost2. Gross invoice priceb. Assume that Lamprino did not pay Mitsu Industries within the discount period but insteadpaid the full invoice price on July 10. Prepare journal entries to record this payment assumingthat the original liability had been recorded at:1. Net cost2. Gross invoice pricec. Assume that you are evaluating the efficiency of Lamprino’s bill-paying procedures. Which accounting method—net cost or gross invoice price—provides you with the most…
Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the inventory purchases and sales of chairs for the month of April. Seif’s Company uses the periodic inventory system. Ending Inventory is determined to be 150 unit. Purchases Units Unit Cost 3/1 Beginning inventory 150 $40 3/3 Purchase 50 $50 3/10 Purchase 250 $55 3/30 Purchase 100 $65 Instructions (a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for April. (Show computations) (b) Using the weighted average method, calculate the amount assigned to the inventory…
Muscat Company uses the periodic inventory system to account for inventories. Information related to Muscat Company's inventory for the month of January 2020 is given as follows: Units Per unit price Total Balance, 1/1/20 200 OMR 5.00 Purchase, 1/15/2020 100 5.30 Purchase, 1/28/2020 100 5.50 The physical inventory count on January 31 shows 120 units are on hand. Using the FIFO method, what is the cost of goods sold? Select one: O a. OMR 600 O b. OMR 520 O c. None of the answers are correct O d. OMR 1,424 O e. OMR 656
The Boxwood Company sells blankets for $40 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 25 $10 10 Sale 10 17 Purchase 28 $12 20 Sale 18 23 Sale 3 30 Purchase 28 $13 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method. a.$84 b.$150 c.$36 d.$186
The Boxwood Company sells blankets for $33 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 10 $18 10 Sale 4 17 Purchase 12 $16 20 Sale 4 23 Sale 2 30 Purchase 12 $22 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method. a.$64 b.$32 c.$72 d.$264
Seals-Navy Surplus Ltd. began October 2017 with 72 tents that cost $22 each. During the month, Seals-Navy Surplus made the following purchases at cost: (Click the icon to view the purchases.) Seals-Navy Surplus sold 319 tents (149 tents on October 22 and 170 tents on October 30), and at October 31 the ending inventory consists of 48 tents. The sale price of each tent was $53. Requirements dollar. (Assume a perpetual inventory control system is used.) Weighted- Average Cost FIFO Ending inventory Cost of goods sold Requirement 2. Explain why cost of goods sold is highest under weighted-average cost. Be specific. (Assume a perpetual inventory control system is used.) Weighted-average cost results in the highest cost of goods sold because (a) the cost of tents is V and (b) weighted-average cost includes the cost of the When costs are rising, these latest inventory costs are the highest and that makes cost of goods sold the under weighted-average cost. Requirement 3. Prepare Seals-Navy…
During the last quarter of the year, Jack Trading Company included Product X among the product lines it carries and sells. During the period, the following transactions related to Product X were made: Purchase 100 units @ Php 100Sale 90 units @ Php 150Purchase 150 units @ Php 120Sale 120 units @ Php 180Purchase 60 units @ Php 150 A. Assuming Jack Trading Company uses perpetual inventory system, determine the ending inventory and cost of goods sold under each of the following costing methods:1. FIFO2. LIFO3. Average B. Assuming Jack Trading Company uses periodic inventory system, determine the ending inventory and cost of goods sold under each of the following costing methods:4. FIFO5. LIFO6. Average