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Problem 1 6 . 2 A ( Static ) An Introduction to Product Costs ( LO 1 6 - 2 , LO 1 6 -

Problem 16.2A (Static) An Introduction to Product Costs (LO16-2, LO16-3, LO16-4)
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:
Direct materials used $ 810,000
Direct labor 864,000
Income tax expense 450,000
General and administrative expenses 540,000
Manufacturing overhead 1,296,000
Selling expenses 360,000
Required:
Compute the total manufacturing costs charged to work in process for the current year.
Compute the cost of finished goods manufactured for the current year.
Compute the cost of goods sold for the current year.
Compute the gross profit and net income for the current year.
Compute the dollar value of ending inventories of (1) work in process and (2) finished goods for the current year.

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