[bvoss1]

I am taking my first accounting class and I can't seem to get my head around this problem. Please help me. Thank you!


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:
The total manufacturing cost is 3,397,000

Direct materials used
$732,000
Direct labor
965,000
Income tax expense
100,000
General and administrative expenses
500,000
Manufacturing overhead
1,700,000
Selling expenses
500,000

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

[paraclete]

I am taking my first accounting class and I can't seem to get my head around this problem. Please help me. Thank you!


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:
The total manufacturing cost is 3,397,000

Direct materials used
$732,000
Direct labor
965,000
Income tax expense
100,000
General and administrative expenses
500,000
Manufacturing overhead
1,700,000
Selling expenses
500,000

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

This is somewhat advanced for a first class. General principle; cost of goods manufactured will consist of materials, labour and overhead howevr you have a lot of extraneous information here

During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit

what do you think this means?