uonspirV EXERCISE 8.2 On 10 May, 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: te ct Unit Cost Total Cost Quantity Purchase Date $1,050,000 480,000 $1,530,000 $15,000 70 9 Apr. 1 May Total on hand. .. $16,000 30 TUO Prepare journal entries to record the cost of the 90 Millenniun laptops sold on 10 May, assuming that Hudson Computing uses the: Specific cost identification methud (62 of the units sold were purchascd on 9 April, and the remaining units were purchased on 1 May). b. Weighted average cost method. c. FIFO method. d. Discuss briefly the financial reporting differences that may arise from choosing the FIFO method over the weighted average cost method moan

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uonspirV
EXERCISE 8.2 On 10 May, 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:
te ct
Unit Cost
Total Cost
Quantity
Purchase Date
$1,050,000
480,000
$1,530,000
$15,000
70
9 Apr.
1 May
Total on hand. ..
$16,000
30
TUO
Prepare journal entries to record the cost of the 90 Millenniun laptops sold on 10 May, assuming
that Hudson Computing uses the:
Specific cost identification methud (62 of the units sold were purchascd on 9 April, and the
remaining units were purchased on 1 May).
b. Weighted average cost method.
c. FIFO method.
d. Discuss briefly the financial reporting differences that may arise from choosing the FIFO
method over the weighted average cost method
moan
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Transcribed Image Text

uonspirV EXERCISE 8.2 On 10 May, 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: te ct Unit Cost Total Cost Quantity Purchase Date $1,050,000 480,000 $1,530,000 $15,000 70 9 Apr. 1 May Total on hand. .. $16,000 30 TUO Prepare journal entries to record the cost of the 90 Millenniun laptops sold on 10 May, assuming that Hudson Computing uses the: Specific cost identification methud (62 of the units sold were purchascd on 9 April, and the remaining units were purchased on 1 May). b. Weighted average cost method. c. FIFO method. d. Discuss briefly the financial reporting differences that may arise from choosing the FIFO method over the weighted average cost method moan

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