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 $30,000 $ 4,710 $59,800 $ 87,100 $ 4,100 Inventories Raw materials Work in process Finished goods Beginning $ 10,700 $ 54,500 $ 33,000 Ending $ 19,300 $ 68, 400 $ 43,300 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. Complete the question by entering your answers in the tabs below. .. ...

Answer 1

Answers

• Requirement 1

Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw material inventory	$10,700
Add: Purchase of raw material	$30,000
Total raw materials available	$40,700
Less: Ending raw material inventory	$19,300
Raw material used in production	$21,400
Less: Indirect materials	$4,710	$16,690
Direct labor cost		$59,800
Manufacturing Overhead applied		$87,100
Total manufacturing costs		$163,590
Add: Beginning WIP Inventory		$54,500
Total cost of Work in Process		$218,090
Less: Ending WIP Inventory		$68,400
Cost of Goods manufactured		$149,690

• Requirement 2

Schedule of Cost of Goods Sold
Beginning Finished Goods Inventory	$33,000
Add: Cost of Goods manufactured	$149,690
Cost of Goods available for sale	$182,690
Less: Ending finished goods inventory	$43,300
Unadjusted Cost of Goods Sold	$139,390
Add: Under applied Overheads	$4,100
Cost of Goods Sold [adjusted]	$143,490