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 $32,000 $ 4,880 $58,000 $88,000 $ 4,070 Inventories Raw materials Work in process Finished goods Beginning $ 11,900 $ 55,200 $ 34,500 Ending $ 19,100 $ 65,700 $ 43,700 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. Complete the question by entering your answers in the tabs below. Required 1 Required 2 < Prev 2 of 6 . Next >

Answer 1

1.

Primare Corporation
Cost of Goods Manufactured Schedule
Direct materials:
Raw materials inventory beginning	11,900
Add: Material purchased	32,000
Total raw materials available	43,900
Less: Raw materials inventory ending	-19,100
Less: Indirect materials	-4,880
Raw material used in production		19,920
Direct labor		58,000
Manufacturing Overheads		88,000
Total Manufacturing Costs		165,920
Add: Work in process inventory, beginning		55,200
Total cost of work in process		221,120
Less:Work in process inventory ending		-65,700
Cost of goods manufactured		$155,420

2.

Primare Corporation
Schedule of Cost of Goods Sold
Finished goods inventory, beginning	34,500
Cost of goods manufactured	155,420
Cost of goods available for sale	189,920
Finished goods inventory, Ending	-43,700
Unadjusted Cost of goods sold	146,220
Under applied manufacturing overhead	4,070
Adjusted Cost of goods sold	$150,290

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