Question 3

Todd Motor Company manufactures automobiles. During September 2020, the company purchased 6,000 head lamps at a cost of $8 per lamp. There was no beginning inventory of lamps. Todd withdrew 4,950 lamps from the warehouse during the month of September. 50 of these lamps were used to replace the head lamps in automobiles used by travelling sales staff. The remaining 4,900 lamps were put in automobiles manufactured during the month. Of the autos put into production during September 2020, 80% were completed and transferred to the companys storage lot. Of the cars completed during the month, 80% were sold by September 30. (a) Determine the cost of head lamps that would appear in each of the following accounts on September 30, 2020: Raw Materials, Work in Process, Finished Goods, Cost of Goods Sold, and Selling Expenses.

Raw materials		$
Work in process
Finished goods
Cost of goods sold
Selling expenses
Total		$