The Devon Motor Company produces motorcycles. During April,the company purchased 8,000 batteries at a cost of $10 per battery.Devon withdrew 7,600 batteries from the storeroom during the month.Of these, 100 were used to replace batteries in motorcycles beingused by the company’s traveling sales staff. The remaining7,500 batteries withdrawn from the storeroom were placed inmotorcycles being produced by the company. Of the motorcycles inproduction during April, 90% were completed and transferred fromwork in process to finished goods. Of the motorcycles completedduring the month, 30% were unsold at April 30. (There were noinventories of any type on April 1).
1. Determine the cost of batteries that would appear in eachof the following accounts at April 30.
a) raw materials
b) work in process
c) finished goods
d) cost of goods sold
e) selling expanse
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