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. 9 110 $ 1,530 $ 168,300 May 1 40 $ 1,500 60,000 Total on hand 150 $ 228,300 Prepare journal entries to record the cost of the 140 Millennium laptops sold

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. 9 110 $ 1,530 $ 168,300 May 1 40 $ 1,500 60,000 Total on hand 150 $ 228,300 Prepare journal entries to record the cost of the 140 Millennium laptops sold

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1MP

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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. Purchase Date Quantity Unit Cost Total Cost Apr. 9 70 $ 1,500 $ 105,000 May 1 30 $ 1,600 48,000 Total on hand 100 $ 153,000 Prepare journal entries to record the cost of the 90 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Specific identification method (62 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
On May 10, Hudson Computing sold 90 Millennium laptop computers to Apex Publishers. At thedate of this sale, Hudson's perpetual inventory records included the following cost layers for theMillennium laptops: Purchase DateApr. 9May 1Total on hand Quantity Unit Cost 70 30 $1,500$1,600 100 Total Cost$105,000 48,000$153,000 Prepare journal entries to record the cost of the 90 Millennium laptops sold on May 10, assumethat Hudson Computing uses the:a. Specific identification method (62 of the units sold were purchased on April 9, and the tmaining units were purchased on May 1).b. Average-cost method.c. FIFO method.d. LIFO method.e. Discuss briefly the financial reporting differences that may arise from choosing the FlFOmethod over the LIFO method.
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 April 9 May 1 Total on hand View transaction list Required: Prepare journal entries to record the cost of the 140 Millennium laptops sold on May 10, assuming that Hudson Computing uses the following: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. a. Specific identification method (83 of the units sold were purchased on April 9, and the remaining units sold were purchased on May 1). b. Average-cost method. c. FIFO method. d. LIFO method. Journal entry worksheet Quantity 90 60 150 1 2 Transaction a. 3 Note: Enter debits before credits. Unit Cost $ 1,500. $ 1,600 4 Record the cost of 140 Millennium computers sold to Apex Publishers under Specific identification method. Total Cost $ 135,000 96,000 $…
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 85 40 125 View transaction list Unit Cost $ 1,400 $1,500 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.) Total Cost $119,000 60,000 $179,000 a. Specific identification method (78 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. Journal entry worksheet
On January 15, 2024, Sports World sold 1,000 Ace-5 fishing reels to Angler's Warehouse. Immediately prior to this sale, Sports World perpetual inventory records for Ace-5 reels included the following cost layers: Purchase Date December 12, 2023 January 9, 2024 Total on hand Quantity 600 900 1,500 2. Average cost. 3. FIFO. 4. LIFO. Unit Cost $29 32 Required: a. Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, assuming that Sports World uses: Total Cost $ 17,400 28,800 $.46,200 1. Specific identification (500 of the units sold were purchased on December 12, and the remaining 500 were purchased on January 9). 1. Specific identification method. 2. Average cost method. 3. First-In, First-out (FIFO) method. 4. Last-in, First-out (LIFO) method. b. Complete a subsidiary ledger record for Ace-5 reels using each of the four inventory valuation methods listed above. Your inventory records should show both purchases of this…
Late in the year, Software City began carrying WordCrafter, a new word processing software program. At December 31, Software City's perpetual Inventory records included the following cost layers in its Inventory of WordCrafter programs. Purchase Date Nov. 14 Dec. 12 Total available for sale at Dec. 31 Quantity 10 28 38 Unit Cost $ 400 320 $ Total Cost $ 4,000 8,960 $12,960 a. At December 31, Software City takes a physical Inventory and finds that all 38 units of WordCrafter are on hand. However, the current replacement cost (wholesale price) of this product is only $250 per unit. 1. Prepare the entries to record this write-down of the Inventory to the lower-of-cost-or-market at December 31. (Company policy is to charge LCM adjustments of less than $2,000 to Cost of Goods Sold and larger amounts to a separate loss account.) 2. Prepare the entries to record the cash sale of 32 WordCrafter programs on January 9, at a retail price of $380 each. Assume that Software City uses the FIFO flow…
Late in the year, Software City began carrying WordCrafter, a new word processing software program. At December 31, Software City's perpetual inventory records included the following cost layers in its inventory of WordCrafter programs: Purchase Date Quantity 10 November 14 Unit Cost $420 330 Total Cost $4,200 7,260 December 12 22 32 Total available for sale at December 31 $ 11,460 Required: a. At December 31, Software City takes a physical inventory and finds that all 32 units of WordCrafter are on hand. However, the current replacement cost (wholesale price) of this product is only $260 per unit. 1. Prepare the entries to record the write-down of this inventory to the lower-of-cost-or-market at December 31. (Company policy is to charge LCM adjustments of less than $2,000 to Cost of Goods Sold and larger amounts to a separate loss account.) 2. Prepare the entries to record the cash sale of 26 WordCrafter programs on January 9, at a retail price of $380 each. Assume that Software City…
On January 15, 2018, Walmart sold 1,700 fishing reels to Costco. Immediately prior to this sale, Walmart perpetual inventory records for reels included the following cost layers: Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,700 reels, assuming that Walmart uses: LIFO
On January 15, 2018, Walmart sold 1,700 fishing reels to Costco. Immediately prior to this sale, Walmart perpetual inventory records for reels included the following cost layers: Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,700 reels, assuming that Walmart uses: FIFO
On January 15, 2018, Walmart sold 1,700 fishing reels to Costco. Immediately prior to this sale, Walmart perpetual inventory records for reels included the following cost layers: Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,700 reels, assuming that Walmart uses: AVERAGE COST
Publishers. At the date of this sale, Merlin's perpetual inventory records included On May 10, Merlin Computers sold 70 Portex lap-top computers to College Text EXERCISE 9-3 Flow Assumptlons the following cost layers for the Portex lap-tops: Purchase Date Quantity Unlt Cost Total Cost April 9. May 1....... .... $48,000 34,000 $82,000 60 $800 40 850 Total on Hand.. 100 INSTRUCTIONS Preparejournal entries to record the cost of the 70 Portex Jap-tops sold on May 10, assuming that Merlin Computers uses the: a Specific identification method (50 of the units sold were purchased on April 9, and the remaining 20 units were purchased on May 1).
During the year, Wright Company sells 425 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Number Date Transaction of Units Unit Cost Total Cost $ 4,740 19,270 14,790 Jan. 1 $79 Beginning inventory Purchase 60 Мay 5 Nov. 3 235 82 Purchase 170 87 465 $ 38,800 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Average # of units Cost per Average # of units Cost per unit Cost of Goods Average Cost Goods Ending Inventory # of units Available unit for Sale Sold per unit Beginning Inventory $ $ $ Purchases: May 5 $ Nov. 3 $ Total