Stylus Ltd, the Manufacturer of Printers, Was Incorporated in September

Short Answer

Stylus Ltd, the manufacturer of printers, was incorporated in September. Stylus purchases the toner cartridges used in the printers from a local distributor. Early in September, Stylus bought 50,000 cartridges at a cost of $20 each. During September, 40,000 cartridges were transferred from Raw Materials Inventory. Of the 40,000 cartridges withdrawn from Raw Materials Inventory, 8,000 were given to sales personnel to be given to customers as an incentive to buy a large quantity of printers. Another 2,000 cartridges were transferred to the corporate office to be used by members of the clerical staff. The remaining 30,000 cartridges were transferred to Work in Process Inventory. Of the units started into production during September, 90 percent of them were completed. Seventy % of the units completed during September were sold and shipped to customers.
Instructions: Determine the cost of cartridges to be found in each of the following accounts:
a. Raw Materials Inventory
b. Work in Process Inventory
c. Finished Goods Inventory
d. Cost of Sales
e. Selling Expenses
f. Administrative Expenses