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 $ 4,710 $59,400 $88,800 $ 4,010 Inventories Raw materials Work in process Finished goods Beginning Ending $ 11,500 $ 19,700 $ 54,700 $ 66,600 $ 34,300 $ 42,400 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

*any doubt please comment

1.

Primare Corporation
Schedule of Cost of goods manufactured
Direct Materials:
Beginning raw materials inventory	11500
Add: Purchases of raw materials	31000
Total raw materials available	42500
Less : Ending raw materials inventory	19700
Raw Materials used in production	22800
Less: Indirect materials included in manufacturing overhead	4710	18090
Direct Labor		59400
Manufacturing overhead applied to work in process		88800
Total manufacturing costs		166290
Add: Beginning work in process inventory		54700
		220990
Less :Ending work in process inventory		66600
Cost of goods manufactured		154390

2.

Primare Corporation
Schedule of Cost of goods sold
Beginning finished goods inventory	34300
Add: Cost of goods manufactured	154390
Cost of goods available for sale	188690
Less :Ending finished goods inventory	42400
Unadjusted cost of goods sold	146290
Add:Underapplied overhead	4010
Adjusted cost of goods sold	150300