Question

Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor Manufacturing overhead applied to work in process Underapplied overhead $31,000 $ 4,620 $58, 200 $87,200 $ 4,070 Inventories Raw materials Work in process Finished goods Beginning $ 10,000 $ 54,500 $ 34,800 Ending $ 18,700 $ 67,800 $ 42,600 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

Answer 1

1	Primare Corporation
	SCHEDULE OF COST OF GOODS MANUFACTURED
		$	$
	Direct materials:
	Beginning Raw materials inventory	10,000.00
	Add: Raw materials purchases	31,000.00
	Raw materials available for use	41,000.00
	Less: Ending Raw materials inventory	(18,700.00)
	Raw materials used in production	22,300.00
	Less: Indirect Materials included in manufacturing overhead	(4,620.00)	17,680.00
	Direct labor		58,200.00
	Manufacturing Overhead applied to work in process		87,200.00
	Total manufacturing costs		163,080.00
	Add: Beginning Work in process inventory		54,500.00
	Total cost of work in process		217,580.00
	Less: Ending Work in process inventory		(67,800.00)
	Cost of goods manufactured		149,780.00
	Primare Corporation
2	Schedule of cost of goods sold for the year
		$
	Beginning Finished Goods	34,800.00
	Add: Cost of goods manufactured	149,780.00
	Cost of goods available for sale	184,580.00
	Less: Ending Finished Goods	(42,600.00)
	Unadjusted Cost of goods sold	141,980.00
	Add: Under applied overhead	4,070.00
	Adjusted Cost of goods sold	146,050.00