SHOW WORK PLEASE Road Warrior Corporation began operations early in the current
ID: 2379867 • Letter: S
Question
SHOW WORK PLEASE
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:
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 on sales for the current year:
Compute the ending inventories of (1) work in process and (2) finished goods for the current year:
SHOW WORK PLEASE
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:
Explanation / Answer
(a) Direct material 795,000.00 Direct Labour 969,000.00 Manufacturing overhead 1,640,000.00 Total manufacturing cost ,a 3,404,000.00 Total cost incurred for finished goods = 50*60,000 b 3,000,000 There cost of production incurred for Work in process c = a-b 404,000.00 Therefore total manufacturing cost charged to work in process = $404,000 (b) Cost of finished goods manufactured = 50 * 60,000 3,000,000 ( c) Cost of goods sold for the current year Manufacturing cost 2,880,000 Add: General and administrative expense (500000/50*48) 480,000 Add: Selling expenses 500,000 Cost of goods sold 3,860,000 (d) Total Sales ( 110000*48) 52,800,000 less: Cost of goods sold 3,860,000 Gross profit 1420,000 Less: Income tax 100,000 Net profit 1320,000Related Questions
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