Question

Exercise 3-3 Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] 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 $ 4,860 $58,900 $88,000 $ 4,100 Inventories Raw materials Work in process Finished goods Beginning $ 10,200 $ 54,000 $ 33,200 $ 33,200 Ending $ 18,300 $ 65,400 $ 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.

Answer 1

Primare Corporation Schedule of Cost of Goods Manufactured Direct Materials: Beginning raw materials inventory Add: Purchases of raw materials $ Total raw materials available Less: Ending raw materials inventory Raw materials used in production Direct Labor Manufacturing Overhead applied to work in proces Total manufacturing costs Add: Beginning work in process inventory 10,200 32,000 42,200 18,300 $ $ 23,900 58,900 88,000 170,800 54,000 224,800 65,400 159,400 $ Less: Ending work in process inventory Cost of Goods manufactured $ $ $ Primare Corporation Schedule of Cost of Goods Sold Beginning finished goods inventory $ Add: Cost of Goods manufactured $ Cost of goods available for sale $ Less: Ending finished goods inventory $ Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold 33,200 159,400 192,600 43,700 $ 148,900 4,100 144,800 $