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 $95,000 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: $ 737,000 900,000 Direct materials used Direct labor General and administrative 500,000 expenses Income tax expense Manufacturing overhead Selling expenses 100,000 1,520,000 500,000
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 $95,000 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: $ 737,000 900,000 Direct materials used Direct labor General and administrative 500,000 expenses Income tax expense Manufacturing overhead Selling expenses 100,000 1,520,000 500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $95,000 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:
S 737,000
900,000
Direct materials used
Direct labor
General and administrative
500,000
expenses
Income tax expense
Manufacturing overhead
Selling expenses
100,000
1,520,000
500,000
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