Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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

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 $105,000 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: $800,000

Direct Labor: $917,000

Income Tax Expense: $100,000

General and Administrative Expenses: $500,000

Manufacturing Overhead: $1,780,000

Selling Expenses: $500,000

A) Compute the total manufacturing costs charged to work in process for the current year.

B) Compute the cost of finished goods manufactured for the current year.

C) Compute the cost of goods sold for the current year.

D) Compute the gross profit on sales for the current year

E) Compute the ending inventories of (1) work in progress and (2) finished goods for the current year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

5th edition

978-0133866292

Students also viewed these Accounting questions