Road Warrior Corporation began operations early in the current year, building lu

Question

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 $ 710,000 Direct labor 861,000 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: Total manufacturing costs $ b. Compute the cost of finished goods manufactured for the current year: Cost of finished goods manufactured $ c. Compute the cost of goods sold for the current year: 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: (1) Ending inventory of work in process $ (2) Ending inventory of finished goods $

Explanation / Answer

Compute the cost of finished goods manufactured for the current year: this is somewhat advanced for a first class. general principle; cost of goods manufactured will consist of materials, labour and overhead howevr you have a lot of extraneous information here During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit what do you think this means?

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