Precision Balls Ltd produces and sells high-quality lawn bowls sets. Each set of balls is contained in a wooden carrying case, which is purchased from an outside supplier. The wooden cases are held as raw materials inventory until they are placed into production and combined with the lawn bowls. The production and purchasing departments have provided the following information for the month of May.
1. Beginning raw materials inventory of wooden cases was 760 at a cost of $19 000.
2. The company purchased 1600 additional cases at $25 each.
3. 1800 cases were transferred to production.
4. 120 cases were given to managers of possible retail outlets for promotional purposes.
Of the cases placed into production, 65% were combined with lawn bowls sets, which were then transferred to finished goods. Of the cases transferred to finished goods during May, 70% had been sold by the end of the month. There was no beginning inventory of wooden cases in finished goods or in work in process.
Required
Determine the cost of the wooden cases that would be included in the following accounts as at 31 May:
1. Raw materials
2. Work in process
3. Finished goods
4. Selling expenses
5. Cost of sales
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