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The Ningbo Fortune Company produces custom-made linens for the hospitality industry. During the month of June, the company purchased 14,400 bolts of spun polyester fabric at the cost of $145 per bolt. Ningbo withdrew 11,700 bolts from the storeroom during the month. Of these, 90 were used as customer samples and swatches for promotional purposes. The remaining 11,610 bolts of polyester withdrawn from the storeroom were used in the production of custom-made table and bed linens. Of the linens produced in June, 80% were completed and transferred from work in process to finished goods. Of the linens completed during the month, 25% were unsold at June 30. There were no inventories of any type on June 1. Required:1. & 2. Determine the cost of bolts of polyester that would appear in each of the following accounts and specify whether they would appear on the balance sheet or on the income statement at June 30.
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