Exercise 1-12 Product and Period Cost Flows [LO1-3] The Devon Motor Company produces automobiles. On April 1st...

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Accounting

Exercise 1-12 Product and Period Cost Flows [LO1-3]
The Devon MotorCompany produces automobiles. On April 1st the company had nobeginning inventories and it purchased 7,170 batteries at a cost of$135 per battery. It withdrew 6,600 batteries from the storeroomduring the month. Of these, 100 were used to replace batteries incars being used by the company’s traveling sales staff. Theremaining 6,500 batteries withdrawn from the storeroom were placedin cars being produced by the company. Of the cars in productionduring April, 90 percent were completed and transferred from workin process to finished goods. Of the cars completed during themonth, 30 percent were unsold at April 30th.
Required:
1. Determine the costof batteries that would appear in each of the following accounts onApril 30th.
a. raw material
b.work in progress
c.finished goods

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calculation of raw material cost of batteries Particulars Amount beginning raw material inventory 0 Add battery purchases 7170 Battery available 7170 less batteries withdraw 6600 inventory See Answer

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Exercise 1-12 Product and Period Cost Flows [LO1-3]The Devon MotorCompany produces automobiles. On April 1st the company had nobeginning inventories and it purchased 7,170 batteries at a cost of$135 per battery. It withdrew 6,600 batteries from the storeroomduring the month. Of these, 100 were used to replace batteries incars being used by the company’s traveling sales staff. Theremaining 6,500 batteries withdrawn from the storeroom were placedin cars being produced by the company. Of the cars in productionduring April, 90 percent were completed and transferred from workin process to finished goods. Of the cars completed during themonth, 30 percent were unsold at April 30th.Required:1. Determine the costof batteries that would appear in each of the following accounts onApril 30th.a. raw materialb.work in progressc.finished goods