Ryser Company was organized on May 1. On that date the company purchased 35,000 plastic emblems, each with a peel-off adhesive backing. The front of the emblems contained the company’s name, accompanied by an attractive logo. Each emblem cost Ryser Company $2. During May, 31,000 emblems were drawn from the Raw Materials inventory account. Of these, 1,000 were taken by the sales manager to an important sales meeting with prospective customers and handed out as an advertising gimmick. The remaining emblems drawn from inventory were affixed to units of the company’s product that were being manufactured during May. Of the units of product having emblems affixed during May, 90% were completed and transferred from Work in Process to Finished Goods. Of the units completed during the month, 75% were sold and shipped to customers.

Required:
1. Determine the cost of emblems that would be in each of the following accounts at May 31:
a. Raw Materials.
b. Work in Process.
c. Finished Goods.
d. Cost of Goods Sold.
e. Advertising Expense.
2. Specify whether each of the above accounts would appear on the balance sheet or on the income statement at May 31.