Question

Seved On May 10, Hudson Computing sold 83 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 Unit Cost 57 $1,800 $1,300 45 Total Cost $102.600 58,500 $161,100 102 Prepare journal entries to record the cost of the 83 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following. (Do not round Intermediate calculations. 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 (55 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 View transaction lit

Answer 1

A) . Specific identification method (55 of the units sold were purchased on April 9 and then remaining units were purchased on May 1 )

Date	Account Title and Explanation	Debit	Credi
May 10	Cost of Goods Sold	$135,400
	Inventory		$ 135,400
	(To Record the Cost of Goods Sold)

Working Note;

Cost of Goods Sold = Number of Units * Unit Cost

= ( 55 * $ 1,800 ) + ((83- 55) * $ 1,300)

= $ 99,000 + $ 36,400 = $ 135,400

B) ..Weighted Average Method

Date	Account Title and Explanation	Debit	Credit
May 10	Cost of Goods Sold	$ 131,091
	Inventory		$ 131,091
	( To Record Cost Of Goods Sold )

Working Note ;

Cost of Goods Sold =

Total Cost / Total Number of Units * Number of Units Sold

= $ 161,100 / 102 * 83 = $ 131,091

C )FIFO Method

Date	Account Title and Explanation	Debit	Credit
May 10	Cost of Goods Sold	$ 136,400
	Inventory		$ 136,400
	To record cost of goods sold

Cost of Goods Sold = Number of Units * Unit Sold

= (57 * $1,800) + ( 26 *$ 1,300)

= $ 102,600 + $ 33,800

= $ 136,400

D)...LIFO Method

Date	Account Title and Explanation	Debit	Credit
May 10	Cost of Goods Sold	$ 126,900
	Inventory		$126,900
	( To record cost of goods sold )

Working Note;

Cost of goods sold = (45 * $ 1,300 ) + (38 * $ 1,800)

=$ 58, 500 + $ 68,400 = $ 126,900