# Question

Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 45 motor homes at a cost of \$55,000 per unit. Of these, 43 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 750,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
General and administrative expenses . . . . . . . . . . . . . . . . . . . 500,000
Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . .... 1,200,000
Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000

Instructions
Compute the following for the current year:
a. Total manufacturing costs charged to work in process during the period.
b. Cost of finished goods manufactured.
c. Cost of goods sold.
d. Gross profit on sales.
e. Ending inventories of
(1) Work in process and
(2) Finished goods.

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• CreatedApril 17, 2014
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