Homework Week 4 Chapter 06 exercises Save Score 0 of 1 pt 2

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 Answer

Solution

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