- During the year, Coronado Boat Yard has incurred manufacturing costs of $420,000 in building three large sailboats. At year-end, each boat is about 70 percent complete. How much of these manufacturing costs should be recognized as expenses in Coronado Boat Yard’s income statement for the current year?
- A company that assembles trucks produces 60 trucks during the current year and incurs $4.5 million of material, labor, and overhead costs. Fifty-three trucks were sold during the year and each is allocated the same amount of costs. How much of the $4.5 million assembly costs should appear on the company’s income statement for the current year? (Enter your answers in dollars and not in millions of dollars.)
- During the current year, the cost of direct materials purchased by a manufacturing firm was $340,000, and the direct materials inventory increased by $65,000. What was the cost of direct materials used during the year?
- 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 $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
Income tax expense
General and administrative expenses
a. Compute the total manufacturing costs charged to work in process for the current year.
b. Compute the cost of finished goods manufactured for the current year.
c. Compute the cost of goods sold for the current year.
d. Compute the gross profit on sales for the current year.
e. Compute the ending inventories of (1) work in process and (2) finished goods for the current year.
Total manufacturing costs
Cost of finished goods manufactured
Cost of goods sold
Gross profit on sales
Ending inventory of work in process
Ending inventory of finished goods