Need help with this accounting question The Devon Motor Company produces automobiles. OnApril 1st the company had no beginning inventoriesand it purchased 6,730 batteries at a cost of $115 perbattery. It withdrew 6,200 batteries from thestoreroom during the month. Of these, 100 were usedto replace batteries in cars being used by thecompany's traveling sales staff. The remaining 6,100batteries withdrawn from the storeroom were placedin cars being produced by the company. Of the cars inproduction during April, 90 percent were completedand transferred from work in process to finishedgoods. Of the cars completed during the month, 30percent were unsold at April 30th.Required:Determine the cost of batteries that would appear ineach of the following accounts on April 30th

Step 1: Define Work-in-process inventoryWork-in-process inventory or a stock depicts a stock that is…

Answered: The Devon Motor Company produces…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 The remaining 5,100 batteries withdrawn from the storeroom were placed in cars being produced by the company.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 The remaining 4,900 batteries withdrawn from the storeroom were placed in cars being produced by the company.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:
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a. Purchased 2,450 units of copper tubing on account at $52.00 per unit . The standard price is 48.50 per unit . If an amount box does not require an entry ,leave it blank . b. Used 1,900 units of copper tubing in the process of manufacturing 200 air conditioners. Ten units of copper tubing are required,at standard, to produce one air conditioner . If an amount box does not require an entry, leave it blank .
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.
! Required information [The following information applies to the questions displayed below.] Home Hardware reported beginning inventory of 35 shovels, for a total cost of $175. The company had the following transactions during the month: January 2 January 16 Sold 12 shovels on account at a selling price of $10 per unit. January 18 Bought 4 shovels on account at a cost of $5 per unit. January 19 Sold 12 shovels on account at a selling price of $10 per unit. January 24 Bought 12 shovels on account at a cost of $5 per unit. January 31 Counted inventory and determined that 15 units were on hand. Sold 9 shovels on account at a selling price of $10 per unit.
Jefferson Print Supplies, Inc., sells laser printers and supplies. Assume Jefferson started the year with 100 containers of ink (average cost of $9.10 each, FIFO cost of $8.40 each, LIFO cost of $7.90 each). During the year, the company purchased 800 containers of ink at $10.00 and sold 600 units for $20.00 each. Jefferson paid operating expenses throughout the year, a total of $3,900. Ignore income taxes for this exercise. Prepare Jefferson's income statement for the current year ended December 31 using the average-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading. Complete the income statement by selecting the appropriate heading and income statement labels, and then calculating the amounts for each of the three required inventory methods. (Calculate unit costs to the nearest cent. Round all other calculations to the nearest whole dollar.) Sales revenue Cost of goods sold Gross profit Operating expenses Net income Jefferson Print Supplies, Inc.…

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