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 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.