Aqua-Marine manufactures fiberglass fishing boats. The manufacturing costs incurred during its

first year or operations are shown as TOllows:

Direct materials purchased

225,000

Direct Materials used 216,000

Direct labor 200,000

Manufacturing overhead350,000

Cost of finished goods manutactured (112 boats)

728 000

During the year . 112 completed boats were manufactured. of which 100 were sold. (Assume that the amount of the ending inventory of finished goods and the cost of goods sold are determined

using the average per-unit cost of manufacturing a completed boat.

Instructions

Compute each of the following and show all computations:

The average per-unit cost of manufacturing a completed boat during the current year

The year-end balances of the inventories or materials, WOrK in process, and finished gods

The cost of goods sold during the year.

For the current year, the costs of direct materials purchased, direct labor assigned to produc tion, and actual manufacturing overhead total $775,000. Is this the amount of manufacturing costs deducted from revenue in the current year ? Explain fully