rchased 7170 6600 batteries from the storeroom during the mo

rchased 7170 6,600 batteries from the storeroom during the month. Of these, 100 were used to The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it pu batteries at a cost of $135 per battery. It withdrew replace batteries in cars being used by the company\'s traveling sales staff. The remaining 6,500 batterles withdrawn from the storeroom were placed in cars being produced by the company, Of the cars in production during April, 90 percent were completed and transferred from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. Cost 1c F 1d of Prex 4of10

Solution

Name of the account Cost 1a Raw material 76950 1b Work in proces 87750 1c Finished goods 236925 1d Cost of goods sold 552825 1e Selling expenses 13500 Working: Units Per unit Total Account head Cost Cost Batteries purchased 7170 135 967950 Batteries issued for use 6600 135 891000 Ending inventory of batteries 570 135 76950 Raw materials Batteries used for travelling staff 100 135 13500 Selling expense Batteries used for production 6500 135 877500 Cars transferred to finished goods 90% 135 Batteries used in finished goods (90% of 6,500) 5850 135 789750 Cars remaining in finished goods 30% 135 Batteries in finished goods (30% of 5,850) 1755 135 236925 Finished goods Batteries in cars sold (70% of 5,850) 4095 135 552825 Cost of goods sold Batteries in cars in work in process (6,500 - 5,850) 650 135 87750 Work in process Reconciliation Batteries in work in proces A 650 Batteries in finished goods B 1755 Batteries in cost of goods sold C 4095 Batteries issued for usage (A+B+C) D 6500 Batteries used for sales staff E 100 Batteries purchased (D+E) F 6600