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Running Rewards began operations on February 1 . The company produces a GPS app designed for runners. Due to a successful marketing plan, over 5
Running Rewards began operations on February The company produces a GPS app designed for runners. Due to a successful marketing plan, over runners signed up for the app during the first month. Once runners download and sign up for the app, they can upload their favourite running routes and access favourite routes of other runners in locations throughout Canada and the US Premium members can choose from a preset list of running goals within the app, and each time a goal is achieved the runner can pay $ to Running Rewards to have a collectible medallion shipped to their home. The company purchases basic medallions, all the same size and design, from a local manufacturer. Running Rewards then uses a lasercutting machine to inscribe these medallions inhouse with different slogans and illustrations depending on the goal the member has achieved. On February the company purchased basic medallions from the local manufacturer at a cost of $ each.
During February, medallions were taken from the raw materials inventory. Of these, were left uninscribed and were set aside for the sales manager to give out as free advertising at a trade show later in the year. The remaining medallions were moved into production during February where a lasercutting machine inscribed them to reflect the goals predicted to be the most popular in the app. Lasercutting adds $ to the cost of a finished medallion. Of the medallions moved to the inscription stage in February, were completed and transferred from work in process to finished goods; no work had been done on the remaining Of the medallions completed during the month, were shipped to customers.
Required:
Determine the cost of medallions that would be in each of the following accounts at February :
Note: Round "Cost of Goods Sold" answer to decimal places.
Specify whether each of the following accounts would appear on the balance sheet or on the income statement at February
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