The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 7,500 batteries at a cost of $150 per battery. It withdrew 6,900 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 The remaining 6,800 batteries withdrawn from the storeroom were placed in cars being produced by the company.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. Required: 1. and 2. Determine the cost of batteries that would appear in each of the following accounts on April 30 and select whether each of the accounts would appear on the balance sheet or on the income statement. Name of the Account la Raw Materials 1b. Work in Process 1c. Finished Goods 1d. Cost of Goods Sold le. Selling Expense Cost Appears on:
The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 7,500 batteries at a cost of $150 per battery. It withdrew 6,900 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 The remaining 6,800 batteries withdrawn from the storeroom were placed in cars being produced by the company.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. Required: 1. and 2. Determine the cost of batteries that would appear in each of the following accounts on April 30 and select whether each of the accounts would appear on the balance sheet or on the income statement. Name of the Account la Raw Materials 1b. Work in Process 1c. Finished Goods 1d. Cost of Goods Sold le. Selling Expense Cost Appears on:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 7,500
batteries at a cost of $150 per battery. It withdrew 6,900 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 6,800 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.
Required:
1. and 2. Determine the cost of batteries that would appear in each of the following accounts on April 30 and select whether each of
the accounts would appear on the balance sheet or on the income statement.
eet or on the i
Appears on:
Name of the Account
la Raw Materials
1b. Work in Process
1c. Finished Goods
1d. Cost of Goods Sold
le. Selling Expense
Cost
Che-
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