Question - 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 $110,000 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 (summarized alphabetically) were as follows:
|
Direct materials used
|
$742,000
|
|
Direct labor
|
955,000
|
|
Income tax expense
|
100,000
|
|
General and administrative expenses
|
500,000
|
|
Manufacturing overhead
|
1,650,000
|
|
Selling expenses
|
500,000
|
a. Compute the total manufacturing costs charged to work in process for the current year.
b. Compute the cost of finished goods manufactured for the current year.
c. Compute the cost of goods sold for the current year.
d. Compute the gross profit on sales for the current year.
e. Compute the ending inventories of (1) work in process and (2) finished goods for the current year.