Question

On May 10, Hudson Computing sold 140 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	105		$	1,500			$	157,500
May 1	45		$	1,600				72,000
Total on hand	150						$	229,500

Prepare journal entries to record the cost of the 140 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 (97 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.

Answer 1

a	Cost of goods sold	214300		=(97*1500)+(140-97)*1600
	Inventory		214300
b	Cost of goods sold	214200		=229500/150*140
	Inventory		214200
c	Cost of goods sold	213500		=(105*1500)+(140-105)*1600
	Inventory		213500
d	Cost of goods sold	214500		=(45*1600)+(140-45)*1500
	Inventory		214500