Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hudson Cycles started May with 12 bicycles that cost $42 each On May 16. Hudson purchased 40 bicydes at $68 sach. On May 31, Hudson

image text in transcribed
image text in transcribed
image text in transcribed
Hudson Cycles started May with 12 bicycles that cost \$42 each On May 16. Hudson purchased 40 bicydes at $68 sach. On May 31, Hudson sold 22 bicydes for $100 each. Requirements 1. Prepare Hudson Cyde's perpetuat inventcry record assuming the company uses the weighted average inventory costing method. 2. Joumalue the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account. Requirement 1. Prepare Hudson Cyde's perpetual inventary record assuming the company utes the weightlod-average inventory costhg mothod. Start by entering the begiming inventory balances. Enter the transoctions in chronological ordec, catculating new imvertory on hand balances aftar each trantaction, Once al of the tranaacions have Hudson Cyclos staded May with 12 bicydes that cost $42 each. On May 16 , Hudson purchased 40 bicydes at 568 each. On May 31 , Hudion sold 22 bicycles for $100 sach. Requlrements 1. Prepare Hudson Cycle's perpetual inventory tecoed aswuming the company uses the weighted-average inventory costing method. 2. Joumalie the May 16 purchase of merchandse imventory on account and the May 31 sale of merchandise inventory on acoount. Requirement 2 Journalze she May 16 purchase of merchandise inventory on account and the May 31 soie of merchandise inventory on acoount. (Record debits first, then creota. Seinct the axplanation on the last tine of the joumal entry table.) May 16: Purchased merchandse inventory on account May 31: Sale of merchandis inventery on accourt. Begin by pregarng the enty to jourhalize the sale porton of the tanaaction Do nok rocord tha expente relategio the sale. We will do that in the following sop. (Assume that Hudson sold int bicycles for 5100 each. Now journalize the expense related to the May 31 sale. Review the perpetual inventory record you prepared in Requirement 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Federal Tax Accounting 2022

Authors: Frank L. Brunetti

1st Edition

080805631X, 9780808056317

More Books

Students also viewed these Accounting questions