Question: On May 10, Hudson computing sold 90 Millennium computers to Apex publishers. At the date of this sale, Hudsons perpetual inventory records included the following
On May 10, Hudson computing sold 90 Millennium computers to Apex publishers. At the date of this sale, Hudsons perpetual inventory records included the following cost layers for the Millennium laptops.
| Purchase date | quantity | unit cost | Total cost |
| April 09 | 70 | 1,500 | 105,000 |
| May 01 | 30 | 1,600 | 48,000 |
| Total on hand | 100 | 153,000 |
Task 1.Prepare journal entries to record the cost of the 90 Millennium laptops sold on May 10, assuming that Hudson computing uses the following: a. Specific identification method (62 of the units sold were purchased on April 9, and remaining units were purchased on May 1) b. Average cost method c. FIFO method d. LIFO method
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
