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 Under applied overhead $30,000 $ 4,800 $59,500 $88, 400 $ 4.050 Inventories Raw materials Vork in process Finished goods Beginning $ 10.200 $ 54,200 $ 33,800 Ending $ 19.700 $ 66.800 $43.600 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

1		Total amount
Direct materials:
Raw materials inventory, beginning	10200
Add: Purchases of raw materials	30000
Total raw materials available	40200
Less: Raw materials inventory, ending	19700
Raw materials used in production	20500
Less: Indirect materials included in manufacturing overhead	4800	15700
Direct labor		59500
Manufacturing overhead applied to work in process inventory		88400
Total manufacturing costs		163600
Add: Beginning work in process inventory		54200
		217800
Less: Ending work in process inventory		66800
Cost of goods manufactured		151000
2
Schedule of Cost of Goods Sold
Finished goods inventory, beginning		33800
Add: Cost of goods manufactured		151000
Goods available for sale		184800
Less: Finished goods inventory, ending		43600
Unadjusted cost of goods sold		141200
Add: Underapplied overhead		4050
Adjusted cost of goods sold		145250