Running Data began operations on February 1. The company produces GPS watches designed for runners. On February 15 , the company purchased 2,900 DVD discs to include with each running watch it sells. The DVD is preloaded with product setup information, an instruction manual including video examples, and warranty details. Each disc cost Running Data $5. During February, 300 discs were taken from the raw materials inventory. Of these, 110 were taken by the sales manager to sales meetings with prospective retailers to carry the watches and handed out as advertising. The remaining discs were included with the GPS watches that were being manufactured in February. Of the watches that were bundled with the discs during February, 60% were completed and transferred from work in process to finished goods. Of the watches completed during the month, 50% were sold and shipped to customers. Required: 1. Determine the cost of discs that would be in each of the following accounts at February 28 : WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expense Sales Utilities, factory Supplies, factory Selling expense Advertising expense Indirect labour, factory Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $92,500 12,500 19,500 43, 500 5, 000 62,500 30,000 71,000 475, 000 27, 000 1,000 81,000 21,000 65,000 7,000 30,000 10,000 40,000