Reference no: EM132517435

Running data began operations on february 1. the company produces GPS watches designed for runners. on february15, the company purchased 2,600DVD discs to include with each running watch it sells. the DVD is preloaded with product setup information, an instruction manual including video examples, and warranty details. Each disc cost running data $4. during february, 700 discs were taken from the raw materials inventory. of these, 80 were taken by the sales manager to sales meetings with prospective retailers to carry the watches and handed out as advertising. the remaining discs were included with the GPS watches that were being manufactured in february. of the watches that were bundled with the discs during february, 70% were completed and transferred from work in process to finished goods. of the watches completed during the month, 50% were sold and shipped to customers.

Question 1: Determine the cost of discuss that would be in each of thr following accounts at february 28.

a-raw materials

b- work in process

c- finished goods

d- cost of goods sold

e- advertising expense

Question 2: Specify whether each of the above accounts would appear on the balancesheet or on the incomestatement at february 28.