Questions: The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 6,620 batteries at a cost of 110 per battery. It withdrew 6,100 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in cars used by the company's traveling sales staff. The remaining 6,000 batteries withdrawn from the storeroom were placed in cars being produced by the company. Of the cars in production during April, 90 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 30 percent were unsold at April 30. Required: 1. and 2 Determine the cost of batteries appearing in each of the following accounts on April 30 and select whether each of the accounts would appear on the balance sheet or on the income statement. Name of the Account Cost Appears on: Raw Materials Work in Process Finished Goods Cost of Goods Sold Selling Expense

To determine the cost of batteries appearing in each account on April 30, we need to analyze the flow of batteries through the company's operations during the month. Here's a breakdown of the situation:

1. Raw Materials:

   • The company purchased 6,620 batteries.
   • It withdrew 6,100 batteries for use, leaving 520 batteries in raw materials.
   • Cost: 520 batteries x $110 = $57,200
   • Appears on: Balance Sheet

2. Work in Process:

   • 6,000 batteries were placed in cars being produced.
   • 90% of these cars were completed, so 10% remain in work in process.
   • Cost: 10% of 6,000 batteries = 600 batteries x $110 = $66,000
   • Appears on: Balance Sheet

3. Finished Goods:

   • 90% of the cars in production were completed, so 5,400 batteries were used in completed cars.
   • 30% of these completed cars were unsold.
   • Cost: 30% of 5,400 batteries = 1,620 batteries x $110 = $178,200
   • Appears on: Balance Sheet

4. Cost of Goods Sold:

   • 70% of the completed cars were sold.
   • Cost: 70% of 5,400 batteries = 3,780 batteries x $110 = $415,800
   • Appears on: Income Statement

5. Selling Expense:

   • 100 batteries were used to replace batteries in cars used by the sales staff.
   • Cost: 100 batteries x $110 = $11,000
   • Appears on: Income Statement

In summary, the costs and their respective accounts are as follows:

• Raw Materials: $57,200 (Balance Sheet)
• Work in Process: $66,000 (Balance Sheet)
• Finished Goods: $178,200 (Balance Sheet)
• Cost of Goods Sold: $415,800 (Income Statement)
• Selling Expense: $11,000 (Income Statement)