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On May 10, Hudson Computing sold 74 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 | 61 | $ | 1,200 | $ | 73,200 |
| May 1 | 45 | $ | 1,600 | 72,000 | |
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| Total on hand | 106 | $ | 145,200 | ||
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Prepare journal entries to record the cost of the 74 Millennium laptops sold on May 10, assuming that Hudson Computing uses the (Round your intermediate and final answer to nearest dollar amount. Omit the “$” sign in your response): |
| a. |
Specific identification method (57 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. |