Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $100,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at year-end. Total costs for the year were as follows:
|
|
|
|
|
| Direct materials used |
|
$ |
775,000 |
|
| Direct labor |
|
|
810,000 |
|
| Income tax expense |
|
|
100,000 |
|
| General and administrative expenses |
|
|
500,000 |
|
| Manufacturing overhead |
|
|
1,570,000 |
|
| Selling expenses |
|
|
500,000 |
|
|
| a. |
Compute the total manufacturing costs charged to work in process for the current year: (Omit the "$" sign in your response.)
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| b. |
Compute the cost of finished goods manufactured for the current year: (Omit the "$" sign in your response.)
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| c. |
Compute the cost of goods sold for the current year: (Omit the "$" sign in your response.)
|
| d. |
Compute the gross profit on sales for the current year: (Omit the "$" sign in your response.)
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| e. |
Compute the ending inventories of (1) work in process and (2) finished goods for the current year: (Omit the "$" sign in your response.)
|