Purchase Solution

Product cost flow - Devon Motor Company

Not what you're looking for?

Ask Custom Question

April Battery purchases at cost 8000 10 80000
Inventory withdrawn -7600
Batteries used 100
90% transferred to finished goods
30% unsold in April

Calculate COGS and explain how you got it.

Purchase this Solution

Solution Summary

The solution explains how to calculate the cost of inventory - raw material, work in process, finished goods and cost of goods sold for Exercise 2-12 relating to Devon Motor Company

Solution Preview

April Battery purchases at cost 8000 10 80000
Inventory withdrawn -7600
Batteries used 100
90% transferred to finished goods
30% unsold in april

Raw materials 8000 10 80000
Work in Progress 7500 10 75000
Finished Goods 6750 10 67500
Cost of Goods Sold 57500 ?
Selling Expense 100 10 1000
30% unsold 2250 10 22500

Balance Sheet as of Aprin 30th

Current Assets
Raw Materials 80000
Finished ...

Purchase this Solution


Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Operations Management

This quiz tests a student's knowledge about Operations Management

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.