Cycles started May

with 5

bicycles that cost $48

each. On May 16,

Hudson

purchased 30

bicycles at $55

each. On May 31,

Hudson

sold 22

bicycles for $100

each.

Requirements

1. Prepare Hudson Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method.

2. Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account.

Question content area bottom

Part 1

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 first. For inventory on hand, enter the oldest inventory layer first. Abbreviation used: QTY = Quantity; Tot. = Total

Hudson Cycles staated May with 5 bicycles that cont $48 each On May 16 . Hudson purchased 30 bicycles at \$55 each On May 31, Haidson sold 22 bicycles for 5100 each Requirements 1. Prepare Hudson Cycle's perpefual inventory tecond assuming the company usos the LiF irventory costing alothod 2. Joumalze the May 16 purchase of morchandise inventory on account and the May 31 sale of merchandise inventory on account. Requirement 1. Prepare Hudson Cycle's perpetual inventory recotd assuming the company uses the LFO irventory costing method Start by entering the beginning laventory balances. Enter the transactions in chronoiogical order, calculaling new ivvontory on hasd balancebs after each transaction. Once all of the tranga inventory purchased, sold, and on hand at the end of the poriod f For cost of noods sold. enter bhe first laver nat under L IFO costing first For imveatory on band, entgr the oldest inventory Requirement 2. Joumalize the May 16 purchase of merchandise imwentory on account and the May 31 sale of nierchandioe inventory on account. (Record dobite first. then credlt Select te May 16: Purchased merchandise ieventory on account May 31: Sale of merchandise imventery on account Begin by preparing the entyy to journalize the sale portion of the transaction Do notrecend the expense rolated to the sale. We will do that in the folowing step (Arsuma thut Hudson sald the