sof - Question: Runcke Motor Company manufactures...

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Question: 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. Fity of these lamps were used to replace the head lamps in autos used by traveling sales staff. The remaining 4,600 lamps were put into autos manufactured during the month. Of the autos put into production during September 2011, 90% were completed and transferred to the company's storage lot. Of the cars completed during the month, 75% were sold by September 30. Instructions: (a) 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. Solution: Computation of the Raw Materials, Work in Process, Finished Goods, Cost of Goods Sold, and Selling Expenses Given information Head Lamps Purchased 5,000 Head Lamps drawn from Inventory 4,650 Head Lamps Remaing in Inventory
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This note was uploaded on 02/12/2012 for the course FIN 200 200 taught by Professor Markempasis during the Spring '09 term at University of Phoenix.

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