Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 43

Cost Flow Assumptions
On May 10, Hudson Computing sold 90 Millennium laptop computers to Apex Publishers.t 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 90 Millennium laptops sold on May 10, assuming that Hudson Computing uses the:
a.pecific identification method (62 of the units sold were purchased on April 9,and the remaining units were purchased on May 1).
b.verage-cost method.
c.IFO method.
d.IFO method.
e.iscuss briefly the financial reporting differences that may arise from choosing the FIFO method over the LIFO method.