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 $ 4,770 $ 58, 500 $ 87,800 $ 4,040 Inventories Raw materials Work in process Finished goods Beginning $ 11,500 $ 55,900 $ 34,600 Ending $ 18,800 $ 65,600 $ 43,800 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

Q1
	Prime Corporation
	Cost of Goods Manufactured Schedule for the Month	$	$
	Direct Materials used:
	Beginning raw materials inventory	11500
	Add: Cost of raw materials purchased	31000
	Total raw materials available	42500
	Less: Ending raw materials inventory	18800
	Total raw materials used		23700
	Direct Labour		58500
	Manufacturing overhead applied to work in process		87800
	Total Manufacturing Costs		170000
	Add beginning work in process inventory		55900
			225900
	Less ending work in process inventory		65600
	Cost of Goods Manufactured		160300
Q2
	Prime Corporation
	Cost of Goods Sold Schedule for the Month		$
	Beginning Finished Goods inventory		34600
	Add: Cost of Goods Manufactured		160300
	Cost of Goods available for sale		194900
	Less :Ending Finished Goods inventory		43800
	Cost of Goods Sold before adjustment		151100
	Add: Underapplied overheads		4040
	Adjusted Cost of Goods Sold		155140