The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 5,630batteries at a cost of $60 per battery. It withdrew 5,200 batteries from the storeroom during the month. Of these, 100 were used toreplace batteries in cars being used by the company's traveling sales staff The remaining 5,100 batteries withdrawn from thestoreroom were placed in cars being produced by the company. Of the cars in production during April, 90 percent were completedand 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 AccountCost1aRaw Materials25,800Work in Process30,60082.620192,7801b1cFinished GoodsCost of Goods SoldSeling Expense1d1e6.000

Process costing: Process costing is included costs like labor, material, and overhead which…

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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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.
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Cortez Company sells chairs that are used at computer stations. Its beginning Inventory of chairs was 230 units at $44 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 295-unit purchase at $49 per unit; the second was a 355-unit purchase at $51 per unit. During the period, It sold 585 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending Inventory, assuming that Cortez uses a. FIFO b. LIFO c. Weighted average. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar amount.) Cost of goods sold Ending inventory FIFO 0.120 LIFO Weighted Average
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McNeil, inc manufactures and sells guitars. During June, McNeil started and completed the production of 300 guitars. McNeil engaged in the following transaction in june: A) Paid $68,000 for materials that were used to make guitars in June. B) Paid $94,000 wages to production workers C) Recorded $34,000 of depreciation on factory equipment D) Sold 260 guitars on account in June for $900 each. Mcneil recorded the cost of goods sold at the time of sale. Required: record the above transactions using the horizontal financial statements model. Be sure to identify the specific accounts affected by the transaction.
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Mr. Mazin is a production manager in Al Rawa Manufacturing & Trading LLC. During the month of January 2021, Al Rawa Manufacturing received an order from a customer. The order has been processed and the finished goods are transferred to the stores. During the production, in one process there was a normal loss of 50 units & abnormal loss of 75 units, the total cost incurred in the process was RO 10,000, the normal loss is estimated at RO 80 per unit, abnormal loss value was estimated at RO 3,000. The production manager requested you to estimate the number of input units issued to the process. a. 225 units b. 200 units c. 250 units d. 275 units
Sweet Nature Corporation manufactures “Sweet ‘n Salty” trail mix. Last month, the company produced and sold 800,000 units and sold them at a price of $4 each. Related information appears below:Item Total CostUtilities for factory $17,000 Advertising (based on number of website page views) 22,000 Costs for product packaging 125,000 Chocolate pieces and dried fruit 152,800 Wages for factory cleaning staff 275,000 Rent of factory and equipment 350,000 Salaries for office staff 475,000 Wages for production crew 486,000 Insurance on the factory 18,000 Nuts (e.g. peanuts, cashews and almonds) 878,950 Required:a. Identify all costs above as either a product cost (specifically DM, DL or OH) or a period cost (PC).b. The company uses the cost-plus approach to pricing and wants to achieve an approximate profit of 25 percent. Did it meet its profit objective last month? Briefly explain. Regardless, what two specific actions would you recommend to improve its profitability Prepare a CVP income…
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
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World Strings produces student-grade violins for beginning violin students. The company produced 2,700 violins in its first month of operations. At month end, 800 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $120.00 each. Total costs from the month are as follows: The table shows the following data with cost in dollars: Direct materials used - 120,300 Direct labor - 65,000 Variable manufacturing overhead - 28,000 Fixed manufacturing overhead - 64,800 Variable selling and administrative expenses - 10,000 Fixed selling and administrative expenses - 12,900 437 The company prepares traditional (absorption costing) income statements for its bankers. World Strings would also like to prepare contribution margin income statements for management use. Compute the following amounts that would be shown on these income statements: 1. Gross profit 2. Contribution margin 3. Total expenses shown below the gross profit line 4. Total expenses…
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