Johnson Company was organized on July 1. On that date the company purchased 35,000 plastic emblems, each with a peel-off adhesive backing. The front of the emblems contained the companys name, accompanied by an attractive logo. Each emblem cost Johnson Company $2.

During July, 31,000 emblems were drawn from the Raw Materials inventory account. Of these, 1,000 were taken by the sales manager to an important sales meeting with prospective customers and handed out as an advertising gimmick. The remaining emblems drawn from inventory were affixed to units of the companys product that were being manufactured during July. Of the units of product having emblems affixed during July, 90% were completed and transferred from Work in Process to Finished Goods. Of the units completed during July, 75% were sold and shipped to customers.

Required

Determine the cost of the emblems that would appear in each of the following accounts at July 31st. Show your work.

Raw Materials
Work in Process
Finished Goods
Cost of Goods Sold
Selling Expense
Total cost	$70,000

Use the space below to show your work.