The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 6,730 batteries at a cost of $115 per battery. It withdrew 6,200 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 The remaining 6,100 batteries withdrawn from the storeroom were placed in cars being produced by the company.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 30th. Required: Determine the cost of batteries that would appear in each of the following accounts on April 30th

The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 6,730 batteries at a cost of $115 per battery. It withdrew 6,200 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 The remaining 6,100 batteries withdrawn from the storeroom were placed in cars being produced by the company.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 30th. Required: Determine the cost of batteries that would appear in each of the following accounts on April 30th

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...

See similar textbooks

Similar questions

The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 5,630 batteries at a cost of $60 per battery. It withdrew 5,200 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 The remaining 5,100 batteries withdrawn from the storeroom were placed in cars being produced by the company.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 30th. Required: 1. Determine the cost of batteries that would appear in each of the following accounts on April 30th. Name of the Account Cost 1a Raw Materials 25,800 Work in Process Finished Goods 30,600 82,620 1b. 1c. 1d. Cost of Goods Sold 192,780 Selling Expense 6,000 1e.
The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 5,410 batteries at a cost of $50 per battery. It withdrew 5,000 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 4,900 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 30th. Required: 1. Determine the cost of batteries that would appear in each of the following accounts on April 30th. Name of the Account 1a. Raw Materials 1b. Work in Process 1c. Finished Goods 1d. Cost of Goods Sold 1e. Selling Expense Cost
The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 7,060 batteries at a cost of $130 per battery. It withdrew 6,500 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in cars used by the company's traveling sales staff. The remaining 6,400 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 appearing 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 Cost Appears on: Raw Materials $ 560 Balance Sheet Work in Process Finished Goods Cost of Goods Sold Selling Expense
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 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. Required: 1. and 2. Determine the cost of batteries appearing 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 Raw Materials Work in Process Finished Goods Cost of Goods Sold Selling Expense Cost Appears on:
None
3
The Devon Motor Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Ofthese, 100 were used to replace batteries in motorcycles used by the company’s traveling sales staff. Theremaining 7,500 batteries withdrawn from the storeroom were placed in motorcycles being produced bythe company. Of the motorcycles in production during April, 90% were completed and transferred fromwork in process to finished goods. Of the motorcycles completed during the month, 30% were unsold atApril 30.There were no inventories of any type on April 1.Required:1. Determine the cost of batteries that would appear in each of the following accounts at April 30:a. Raw Materials.b. Work in Process.c. Finished Goods.d. Cost of Goods Sold.e. Selling Expense.2. Specify whether each of the above accounts would appear on the balance sheet or on the incomestatement at April 30.
Please answer full question .
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 230 units at $45 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 265-unit purchase at $50 per unit; the second was a 360-unit purchase at $52 per unit. During the period, it sold 535 chairs. RequiredDetermine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO. LIFO. Weighted average.
Alpha makes ceramic vases out of specialized clay. During July, it purchased 500 kgs of clay at $60 per kg. It started manufacture of 4,000 vases and completed 3,200 vases during the month. The remaining 800 vases are in process at the end of the month. It incurred direct labor charges of $500 and other conversion costs of $400, which included electricity costs of $200. Alpha had no beginning or ending inventory of DM (clay). It also had no beginning inventory of vases. At the end of the period, the 800 vases in progress were 100% complete for direct materials (DM) and 50% complete for conversion costs. 12) What is the total conversion costs for the month of July? 13) What is the number of equivalent units completed for conversion costs? 14) What is the conversion cost per equivalent unit for the year? 15) How much are direct materials costs for the month? diroot motorials2
Cambridge Company manufactures plastic bottles that it sells to organizations that manufacture bottled water. During the most recent month, there was no opening inventory. During the month, 25 million bottles were entered into production and 24 million were completed The units in ending inventory were 100% complete with respect to materials costs and 60% complete with respect to conversion costs. During the month, materials costs were $500,000 and conversion costs were $246,000. Do not round intermediate calculations. a) What was the number of equivalent units work done for conversion costs this month? 24,600,000 b) What was the cost per equivalent unit of conversion cost this month? Round answer to three decimal places. $ 0.01 c) What is the cost that will be allocated to units completed and transferred out? Round answer to nearest whole dollar amount. $ 240,000 d) What is the cost that will be allocated to ending work in process? Round answer to nearest whole dollar amount. $ 6,000 X
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 220 units at $46 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 310-unit purchase at $51 per unit; the second was a 355-unit purchase at $53 per unit. During the period, it sold 570 chairs. RequiredDetermine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO. LIFO. Weighted average. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)