On may 10,Hudson Computing sold 90 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:
Purchases date quantity unit cost total cost
Apr. 9 70 $1500 $105,000
May 1 30 $1600 $ 48,000
Total on hand 100 $153,000
Requirements:
1. specific identification method(62 of the units sold were purchased on April 9, and the remaining units were purchased on May 1)
2. Average-cost method
3. FIFO method
4. LIFO method
5. discuss briefly the financial reporting differences that may arise from choosing the FIFO method over the LIFO method.