11. Logan Company manufactures campers. On March 1 they purchase 200 ovens to in
ID: 2555327 • Letter: 1
Question
11. Logan Company manufactures campers. On March 1 they purchase 200 ovens to inside the campers and they cost $200 each. On April 1 they take 100 of the out of the warehouse. Twenty of these ovens were installed in the salesmen's campers and the other 80 are installed in the campers they are manufacturing to install ovens display sell. Of the campers manufactured, 60% were completed and transferred to the sale lot, 70% of the campers completed were sold by April 30. Determine the cost of the ovens that would appear in the following accounts. Raw Materials inventory Work in process inventory Finished goods inventony Cost of goods sold ($20,000) -($6,400) ($2,880) ($6,720)Explanation / Answer
Ans :
Raw Material Inventory= 100 ovens x $ 200 = $ 20000
Work in Progress= 80 units x 40% x $ 200 = $ 6400
F.G. Inventory = 80 units x 60% x 30% x 200= $ 2880
Cost of Goods Sold= 80 units x 60% x 70% x 200= $ 6720
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