Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aqua-Marine manufactures fiberglass fishing boats. The manufacturing costs incurred during its first year of operations are shown as follows: Direct materials purchased . . .

  • Aqua-Marine manufactures fiberglass fishing boats. The manufacturing costs incurred during its first year of operations are shown as follows: Direct materials purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $225,000 Direct materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,000 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000 Cost of finished goods manufactured (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 a. Compute each of the following and show all computations: 1. The average per-unit cost of manufacturing a completed boat during the current year. 2. The year-end balances of the inventories of materials, work in process, and finished goods. 3. The cost of goods sold during the year. b. For the current year, the costs of direct materials purchased, direct labor assigned to production, and actual manufacturing overhead total $775,000. Is this the amount of manufacturing costs deducted from revenue in the current year? Explain fully.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Volume 1

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

9th Canadian edition

978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096

More Books

Students also viewed these Accounting questions

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago