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Purchase Date Apr. 9 May 1 Total on hand Quantity 80 45 125 Unit Cost $ 1,500 $ 1,600 Total Cost $120,000 72,000 $192,000

Purchase Date Apr. 9 May 1 Total on hand Quantity 80 45 125 Unit Cost $ 1,500 $ 1,600 Total Cost $120,000 72,000 $192,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 8.2 (Algo) Cost Flow Assumptions (LO8-1) On May 10, Hudson Computing sold 115 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 Apr. 9 May 1 Total on hand Quantity 80 45 125 Unit Cost $1,500 $1,600 Total Cost $120,000 72,000 $192,000 Prepare journal entries to record the cost of the 115 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following. (Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Specific identification method (71 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.
Transcribed Image Text:Exercise 8.2 (Algo) Cost Flow Assumptions (LO8-1) On May 10, Hudson Computing sold 115 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 Apr. 9 May 1 Total on hand Quantity 80 45 125 Unit Cost $1,500 $1,600 Total Cost $120,000 72,000 $192,000 Prepare journal entries to record the cost of the 115 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following. (Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Specific identification method (71 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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