Problem 16.2A (Algo) An Introduction to Product Costs (LO16-2, LO16-3, LO16-4) Sky Tracker Corporation manufactures a telecommunications device. During its first year of operations, the company started and completed 50 devices 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 Direct labor Income tax expense General and administrative expenses Manufacturing overhead Selling expenses $ 737,000 868,000 100,000 500,000 Required: 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. a. b. 1,770,000 500,000 c. Compute the cost of goods sold for the current year. d. Compute the gross profit on sales and net Income for the current year. e. Compute the dollar value of ending Inventories of (1) work in process and (2) finished goods for the current year. C. d. Total manufacturing costs charged to work in process for the current year. Cost of finished goods manufactured Cost of goods sold Gross profit on sales
Problem 16.2A (Algo) An Introduction to Product Costs (LO16-2, LO16-3, LO16-4) Sky Tracker Corporation manufactures a telecommunications device. During its first year of operations, the company started and completed 50 devices 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 Direct labor Income tax expense General and administrative expenses Manufacturing overhead Selling expenses $ 737,000 868,000 100,000 500,000 Required: 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. a. b. 1,770,000 500,000 c. Compute the cost of goods sold for the current year. d. Compute the gross profit on sales and net Income for the current year. e. Compute the dollar value of ending Inventories of (1) work in process and (2) finished goods for the current year. C. d. Total manufacturing costs charged to work in process for the current year. Cost of finished goods manufactured Cost of goods sold Gross profit on sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 16.2A (Algo) An Introduction to Product Costs (LO16-2, LO16-3, LO16-4)
Sky Tracker Corporation manufactures a telecommunications device. During its first year of operations, the company started and
completed 50 devices 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
Direct labor
Income tax expense
General and administrative expenses
Manufacturing overhead
Selling expenses
Required:
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 and net Income for the current year.
e. Compute the dollar value of ending Inventories of (1) work in process and (2) finished goods for the current year.
a
b.
d.
$ 737,000
868,000
100,000
500,000
1,770,000
500,000
e-2
Total manufacturing costs charged to work in process for the current year.
Cost of finished goods manufactured
Cost of goods sold
Gross profit on sales
Net income
Ending inventory of work in process
Ending inventory of finished goods
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