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. see $ 87,800 $ 4.040 Inventories Raw materials Work in process Finished goods Beginning $ 11,500 $ 55,900 $ 34,600 Ending $ 18, 8ee $ 65,689 $ 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

Primare Corporation Schedule of cost of goods Manufactured Direct materials: Beginning raw materials inventory & 11, Soo Add Purchases of raw materials & 31,000 Total raw materials available $ 42,500 Less: Ending raw material inventory & 18,800 Raw materials used in production & 23, 700 Less: Indirect materials included in manus $ 4,770 $ 18,930 acturing overhead Direct labor $ 58,500 Manufacturing overhead applied to work in $ 87,800 Total manufacturing costs $ 165,230 Add: Beginning work in process inventory $ 55,900 $ 221,130 Less: Ending work in process inventory $ 65,600 Cost of goods manufactured $ 155,530 for

Primare corporation Schedule of cost of Goods Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Una djusted cost of goods sold Add: Under applied overhead Adjusted cost of goods sold Sold $ 34,600 $ 155,530 $ 190, 130 $ 43,800 $ 146,330 $ 4,040 $ 150,370