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On May 10, Hudson Computing sold 90 Millennium laptop computers to Apex Publishe

ID: 2586111 • Letter: O

Question

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.


Prepare journal entries to record the cost of the 72 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 (57 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.

******** I NEED HELP WITH THE ONES THAT HAVE THE RED "X" NEXT TO THEM.*************

Purchase Date Quantity Unit Cost Total Cost Apr. 9 63 $1,100 $69,300 May 1 41 $1,900 $77,900 Total on hand 104 $147,200 Answer is complete but not entirely correct Transaction General Journal Debit Credit Cost of goods sold 91,200 Inventory 91,200 Cost of goods sold 101,907 Inventory 101,907 C. Cost of goods sold 118,700 Inventory 118,700 4 Cost of goods sold 101,000 Inventory 101,000

Explanation / Answer

      No

Transaction

General journal

    Debit

Credit

1

         a

specific identification method:

   cost of goods sold

$91,200

                         inventory

$91,200

(57*1100)+(15*1900) =$91,200

2

         b

average cost method:

cost of goods sold

$101,907

                       inventory

$101,907

(147,200/104)=$1415.38 perunit*72 =$101,907.69

3

           c

FIFO method:

cost of goods sold

$86,400

                        inventory

$86,400

(63*1100)+(9*1900) = $86,400

4

           d

LIFO METHOD:

   cost of goods sold

$112,000

                         inventory

$112,000

(41*1900)+(31*1100) =$112,000

      No

Transaction

General journal

    Debit

Credit

1

         a

specific identification method:

   cost of goods sold

$91,200

                         inventory

$91,200

(57*1100)+(15*1900) =$91,200

2

         b

average cost method:

cost of goods sold

$101,907

                       inventory

$101,907

(147,200/104)=$1415.38 perunit*72 =$101,907.69

3

           c

FIFO method:

cost of goods sold

$86,400

                        inventory

$86,400

(63*1100)+(9*1900) = $86,400

4

           d

LIFO METHOD:

   cost of goods sold

$112,000

                         inventory

$112,000

(41*1900)+(31*1100) =$112,000

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