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.
Calculate the following:
Cost of goods sold (at average cost).
The ending inventory of Millennium Laptops at May 31, using the average-cost method.
The ending inventory of Millennium Laptops at May 31, using the FIFO method.
The ending inventory of Millennium Laptops at May 31, using the LIFO method.
Please answer all questions:
Why is a knowledge of accounting terms and concepts useful to persons other than professional accountants?
Why is inventory considered both asset and expense?
Define liabilities. Identify several characteristics that distinguish liabilities from owners’ equity.
Why an employer’s total cost of a payroll may exceed by a substantial amount the wages and salaries earned by employee?
Why is the going-concern assumption an important consideration in understanding financial statements?
Is externally reported financial information always precise and accurate? Why or why not?
What is the distinction between a capital expenditure and a revenue expenditure?
What is the purpose of a stock split?
What are short-term investments (marketable securities), and why do companies invest their money in it?
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