Easy Living Corporation manufactures houseboats. During its first year of operations, the company started and completed 40 boats at a cost of $96,000 per unit. Of these, 30 were sold for 156,000 each and 10 remain in finished goods inventory. In addition, the company had five 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 on sales 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 $ 960,000 1,200,000 280,000 720,000 2,400,000 380,000