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 $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:

Compute the total manufacturing costs charged to work in process for the current year: (Omit the "$" sign in your response.)

Compute the cost of finished goods manufactured for the current year: (Omit the "$" sign in your response.)

Compute the cost of goods sold for the current year: (Omit the "$" sign in your response.)

Compute the gross profit on sales for the current year: (Omit the "$" sign in your response.)

Compute the ending inventories of (1) work in process and (2) finished goods for the current year: (Omit the "$" sign in your response.)

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:

Explanation / Answer

ans

Compute the total manufacturing costs charged to work in process for the current year:

Total manufacturing costs $3,407,000

Direct materials used $788,000
Direct labor apply to production 969,000
Manufacturing overhead 1,650,000
Total manufacturing costs assigned $3,407,000

Compute the cost of finished goods manufactured for the current year:

Cost of finished goods manufactured $3,000,000

Cost per completed motor home $60,000
Number of motor homes completed during the year 50
Cost of finished goods manufactured $3,000,000 (50 units

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