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 $ 4,660 $58, 100 $87,900 $ 4,020 Inventories Raw materials Work in process Finished goods Beginning $ 11,600 $ 54,200 $ 34,000 Ending $ 18,700 $ 65,900 $ 43,200 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. Complete the question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the month. Primare Corporation Schedule of Cost of Goods Manufactured Dirert materiale

Answer 1

Answer

--Requirement 1

Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw material inventory	$11,600
Add: Purchase of raw material	$32,000
Total raw materials available	$43,600
Less: Ending raw material inventory	$18,700
Raw material used in production	$24,900
Less: Indirect materials	$4,660	$20,240
Direct labor cost		$58,100
Manufacturing Overhead applied		$87,900
Total manufacturing costs		$166,240
Add: Beginning WIP Inventory		$54,200
Total cost of Work in Process		$220,440
Less: Ending WIP Inventory		$65,900
Cost of Goods manufactured		$154,540

--Requirement 2

Schedule of Cost of Goods Sold
Beginning Finished Goods Inventory	$34,000
Add: Cost of Goods manufactured	$154,540
Cost of Goods available for sale	$188,540
Less: Ending finished goods inventory	$43,200
Unadjusted Cost of Goods Sold	$145,340
Add: Under applied Overheads	$4,020
Cost of Goods Sold [adjusted]	$149,360