1. Determine the cost of batteries that would appear in each of the following accounts on April 30.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 26E: Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other...
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The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 8,000 batteries at a cost of $80 per battery. It withdrew 7,600 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in cars being used by the company’s traveling sales staff. The remaining 7,500 batteries withdrawn from the storeroom were placed in cars being produced by the company. Of the cars in production during April, 90 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 30 percent were unsold at April 30.

 

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1. Determine the cost of batteries that would appear in each of the following accounts on April 30.

 

 
 
Name of the Account Cost
1a. Raw Materials $32,000
1b. Work in Process $60,000
1c. Finished Goods  
1d. Cost of Goods Sold  
1e. Selling Expense $8,000
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