Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

*Same question is uploaded as .doc attachment* Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the

*Same question is uploaded as .doc attachment* 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 $110,000 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 $ 742,000 Direct labor 955,000 Income tax expense 100,000 General and administrative expenses 500,000 Manufacturing overhead 1,650,000 Selling expenses 500,000 a. Compute the total manufacturing costs charged to work in process for the current year: (Omit the "$" sign in your response.) Total manufacturing costs $ b. Compute the cost of finished goods manufactured for the current year: (Omit the "$" sign in your response.) Cost of finished goods manufactured $ c. Compute the cost of goods sold for the current year: (Omit the "$" sign in your response.) Cost of goods sold $ d. Compute the gross profit on sales for the current year: (Omit the "$" sign in your response.) Gross profit on sales $ e. Compute the ending inventories of (1) work in process and (2) finished goods for the current year: (Omit the "$" sign in your response.) (1) Ending inventory of work in process $ (2) Ending inventory of finished goods $ image text in transcribed

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 $110,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at yearend. Total costs for the year (summarized alphabetically) were as follows: Direct materia ls used Direct labor Inco me tax expens e Gener al and admini strative expens es Manu facturi ng overhe ad Sellin g expens es 742,00 0 $ 955,00 0 100,00 0 500,00 0 1,650, 000 500,00 0 a.Compute the total manufacturing costs charged to work in process for the current year: (Omit the "$" sign in your response.) Total manufacturing costs $ b Compute the cost of finished goods manufactured for the . current year: (Omit the "$" sign in your response.) Cost of finished goods $ manufactured c. Compute the cost of goods sold for the current year: (Omit the "$" sign in your response.) Cost of goods $ sold d Compute the gross profit on sales for the current year: (Omit . the "$" sign in your response.) Gross profit on $ sales e. Compute the ending inventories of (1) work in process and (2) finished goods for the current year:(Omit the "$" sign in your response.) (1) (2) Ending inventory of $ work in process Ending inventory of $ finished goods

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 For Decision Making And Control

Authors: Jerold Zimmerman

7th Edition

0078136725, 9780078136726

More Books

Students also viewed these Accounting questions

Question

3. To retrieve information from memory.

Answered: 1 week ago

Question

2. Value-oriented information and

Answered: 1 week ago

Question

1. Empirical or factual information,

Answered: 1 week ago