Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $100,000 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:
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Direct materials used | | $ | 775,000 | |
Direct labor | | | 810,000 | |
Income tax expense | | | 100,000 | |
General and administrative expenses | | | 500,000 | |
Manufacturing overhead | | | 1,570,000 | |
Selling expenses | | | 500,000 | |
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a. | Compute the total manufacturing costs charged to work in process for the current year: (Omit the "$" sign in your response.) |
b. | Compute the cost of finished goods manufactured for the current year: (Omit the "$" sign in your response.) |
c. | Compute the cost of goods sold for the current year: (Omit the "$" sign in your response.) |
d. | Compute the gross profit on sales for the current year: (Omit the "$" sign in your response.) |
e. | Compute the ending inventories of (1) work in process and (2) finished goods for the current year: (Omit the "$" sign in your response.) |
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