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. $ 31,000 $ 4,620 $ 58,300 $ 87, 300 $ 4,130 Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor Manufacturing overhead applied to work in process Underapplied overhead Beginning $ 10,300 $ 55,000 $ 34,600 Inventories Raw materials Work in process Finished goods Ending $ 19,500 $ 68,900 $ 43,100 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)

Schedule of cost of goods manufactured
Direct materials
Beginning raw materials inventory	10,300
Add: Purchases of raw materials	31,000
Total raw materials available	41,300
Deduct: Ending raw materials inventory	-19,500
Raw materials used in production	21,800
Less indirect materials included in manufacturing overhead	-4,620	17,180
Direct labor		58,300
Manufacturing overhead applied to work in process		87,300
Total manufacturing costs		162,780
Add: Beginning work in process inventory		55,000
Deduct: Ending work in process inventory		-68,900
Cost of goods manufactured		148,880

　

2)

Beginning finished goods inventory	34,600
Add: Cost of goods manufactured	148,880
Cost of goods available for sale	183,480
Deduct: Ending finished goods inventory	-43,100
Unadjusted cost of goods sold	140,380
Add: Underapplied overhead	4,130
Adjusted cost of goods sold	144,510