The Devort Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 5,850 batteries at a cost of $70 per battery. It withdrew 5,400 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 The remaining 5,300 batteries withdrawn from the storeroom were placed in cars being produced by the company.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 wore 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: D

The Devort Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 5,850 batteries at a cost of $70 per battery. It withdrew 5,400 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 The remaining 5,300 batteries withdrawn from the storeroom were placed in cars being produced by the company.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 wore 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: D

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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