Homework: Week 4 Chapter 06 exercises Save Score: 0 of 1 pt 2 of 10 (2 complete)
ID: 2399924 • Letter: H
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Homework: Week 4 Chapter 06 exercises Save Score: 0 of 1 pt 2 of 10 (2 complete) HW Score: 12.67%, 1.27 of 10 pts S6-5 (similar to) Question Help Hudson Cycles started January with 5 bicycles that cost $48 each. On January 16, Hudson bought 30 bicycles at $55 each. On January 31, Hudson sold 16 bicycles for $105 each. Requirements 1. Prepare Hudson Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method 2. Journalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. Requirement 1. Prepare Hudson Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under LIFO costing frst For inventory on hand, enter the oldest inventory layer first Abbreviation used QTY Quantity, Tot Total) Hudson Cycles Purchases Cost of Goods Sold Inventory on Hand QTY Unit Cost Tot.Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot, Cost Date Jan 1 Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check AnswerExplanation / Answer
1)
LIFO METHOD
Opening Inventory
Purchase Inventory
Cost of goods sold
Inventory on Hand
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Jan-01
5
48
240
5
48
240
Jan-16
30
55
1650
30
55
1650
5
48
240
Jan-31
16
55
880
14
55
770
5
48
240
TOTAL
240
1650
880
1010
Inventory on Hand
1010
Cost of goods sold
880
2)
Date
Particulars
Debit
Credit
Purchase of inventory on Jan 16 on account
Jan 16
Inventory
1650
Accounts payable
1650
Purchase of inventory on Jan 31 on account
Jan 31
Accounts receivable
1680(16*105)
Sales
1680
Cost of goods sold
880
Inventory
880
LIFO METHOD
Opening Inventory
Purchase Inventory
Cost of goods sold
Inventory on Hand
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Jan-01
5
48
240
5
48
240
Jan-16
30
55
1650
30
55
1650
5
48
240
Jan-31
16
55
880
14
55
770
5
48
240
TOTAL
240
1650
880
1010
Inventory on Hand
1010
Cost of goods sold
880
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