On May 10, Hudson Computing sold 90 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 Quantity Unit Cost Total Cost Apr. 9 70 $ 1,500 $ 105,000 May 1 30 $ 1,600 48,000 Total on hand 100 $ 153,000 Prepare journal entries to record the cost of the 90 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Specific identification method (62 of the units sold were purchased on April 9, and the remaining units were purchased on May 1). b. Average-cost method. c. FIFO method. d. LIFO method
On May 10, Hudson Computing sold 90 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 Quantity Unit Cost Total Cost Apr. 9 70 $ 1,500 $ 105,000 May 1 30 $ 1,600 48,000 Total on hand 100 $ 153,000 Prepare journal entries to record the cost of the 90 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Specific identification method (62 of the units sold were purchased on April 9, and the remaining units were purchased on May 1). b. Average-cost method. c. FIFO method. d. LIFO method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On May 10, Hudson Computing sold 90 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 Quantity Unit Cost Total Cost
Apr. 9 70 $ 1,500 $ 105,000
May 1 30 $ 1,600 48,000
Total on hand 100 $ 153,000
Prepare journal entries to record the cost of the 90 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. Specific identification method (62 of the units sold were purchased on April 9, and the remaining units were purchased on May 1).
b. Average-cost method.
c. FIFO method.
d. LIFO method
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