World Bridge Corporation manufactures a telecommunications device. During its first year of operations, the company started and completed 45 devices at a cost of $59,400 per unit. Of these, 43 were sold for $132,000 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:

Instructions

Compute the following for the current year:

a. Total manufacturing costs charged to work in process during the period.

b. Cost of finished goods manufactured.

c. Cost of goods sold.

d. Gross profit and net income.

e. Ending inventories of (1) work in process and (2) finished goods.

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Direct materials used Direct labor..... Income tax expense General and administrative expenses. Manufacturing overhead. Selling expenses.. $ 810,000 864,000 450,000 540,000 1,296,000 360,000