Answer and Explanation:
The computation is shown below:-
a) raw-materials is
= (8,000 - 7,600) × $80
= $32,000
b) work in process 7,500 batteries x $80 x 10%
= $60,000
c) Finished goods = 7,500 batteries × $80 × 90% × 30%
= $162,000
d) cost of goods sold 7,500 batteries x $80 × 90% × 70%
= $378,000
e) selling expense is
= 100 × $80
= $8,000
Total 8,000 batteries purchased × $10 per battery is
$80,000
2. Specification is shown below:
a) rawmaterials stock $32,000 Balance Sheet
b) work inprocess $60,000 BalanceSheet
c) Finishedgoods stock $162,000 BalanceSheet
d) cost of goodssold $378,000 IncomeStatement
e) sellingexpense $8,000 IncomeStatement
