Exercise 1-12 (Algo) Product and Period Cost Flows [LO1-3]

The Devon 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 companys 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 The remaining 5,300 batteries withdrawn from the storeroom were placed in cars being produced by the company.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 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.

\begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Name of the Account } & \multicolumn{1}{c|}{ Cost } & \\ \hline Raw Materials & & \\ \hline Work in Process & & \\ \hline Finished Goods & & \\ \hline Cost of Goods Sold & & \\ \hline Selling Expense & & \\ \hline \end{tabular}