Runcke motor company manufactures automobiles during

Assignment Help Accounting Basics

Reference no: EM13584605

Runcke Motor Company manufactures automobiles. During September 2011 the company purchased 5,000 head lamps at a cost of $9 per lamp. Runcke withdrew 4,650 lamps from the warehouse during the month. Fifty of these lamps were used to replace the head lamps in autos used by traveling sales staff. The remaining 4,600 lamps were put in autos manufactured during the month.

Of the autos put into production during September 2011, 90% were completed and transferred to the company%u2019s storage lot. Of the cars completed during the month, 75% were sold by September 30.Determine the amount of cost to appear in various accounts, and indicate in which financial statements these accounts would appear.

Instructions

Determine the cost of head lamps that would appear in each of the following accounts at September 30, 2011: Raw Materials, Work in Process, Finished Goods, Cost of Goods Sold, and Selling Expenses.
Write a short memo to the chief accountant, indicating whether and where each of the accounts in (a) would appear on the income statement or on the balance sheet at September 30, 2011.

Image text transcribed for accessibility Runcke Motor Company manufactures automobiles. During September 2011 the company purchased 5,000 head lamps at a cost of $9 per lamp. Runcke withdrew 4,650 lamps from the warehouse during the month. Fifty of these lamps were used to replace the head lamps in autos used by traveling sales staff. The remaining 4,600 lamps were put in autos manufactured during the month. Of the autos put into production during September 2011, 90% were completed and transferred to the company%u2019s storage lot. Of the cars completed during the month, 75% were sold by September 30. Determine the amount of cost to appear in various accounts, and indicate in which financial statements these accounts would appear. 1.Determine the cost of head lamps that would appear in each of the following accounts at September 30, 2011: Raw Materials, Work in Process, Finished Goods, Cost of Goods Sold, and Selling Expenses. Write a short memo to the chief accountant, indicating whether and where each of the accounts in (a) would appear on the income statement or on the balance sheet at September 30, 2011.

Reference no: EM13584605

Questions Cloud

The standard materials price is 040 per pound the standard : direct materials and direct labor variancesat the beginning of june cornerstone printing company budgeted 15000 books

Rockwell purchased a tract of land for 125000 in 2004 when : rockwell purchased a tract of land for 125000 in 2004 when he heard that a new highway was going to be constructed

This cost is 55month due at the end of each month if the : a pet cemetary sells plots for 3000 plus an amount calculated to provide for the cost of maintaining the grounds in

If the first of the five bursaries are to be awarded : simon donated 750000 to the junior idol hopefuls to fund a perpetuity of five annual bursaries for students of the

Runcke motor company manufactures automobiles during : runcke motor company manufactures automobiles. during september 2011 the company purchased 5000 head lamps at a cost of

Cricket company produces many different types of pet toys : cricket company produces many different types of pet toys. you have been hired as a cost accountant to do some basic

What semi-annual contributions including one today must : dolly has just opened a registered education fund for her daughter lolly. she wants to contribute 3000 at the beginning

What duration of annuity paying 8500 at the end of every : what duration of annuity paying 8500 at the end of every quarter can be purchased with 300000 in the invested funds

What initial liability can the boys report on their balance : the fine brothers curly larry amp moe signed a 7 year lease on a new dump truck for their new construction business.

User Account

All Pages