Question

Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 31,000 Indirect materials included in manufacturing overhead $ 4,910 Direct labor $ 58,700 Manufacturing overhead applied to work in process $ 87,300 Underapplied overhead $ 4,080 Inventories Beginning Ending Raw materials $ 10,100 $ 18,500 Work in process $ 55,900 $ 67,900 Finished goods $ 33,700 $ 42,200 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

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer Part 1) Cost of goods Manufactured Direct Material used Beginning raw material inventory Add Purchases Less Indirect Material Less Ending raw material inventory Direct Labor ) Manufacturing overheads Total manufacturing Cost 2 Beginning work in process 10100l 310001 49101 185001 17690 587001 873001 163690 55900 219590 67900 151690 Ending work in process 5 Cost of goods manufactured 7 Part 2) Part 2) Schduele of Cost of goods sold Beginning Finished goods Cost of goods manufactured 33700 151690 185390 422001 2 Less Ending finished goods Cost of goods sold (excluding underapplied or 3 overapplied overheads) Add underapplied overheads 5 Adjusted Cost of goods sold 5 For any help please comment in the comment 143190 4080 147270