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, see $ 4,55e $ 59, 60e $87.4ee $ 4.15 Inventories Raw materials Work in process Finished goods Beginning $ 10,400 $ 54,300 $ 33,200 Ending $ 18,100 $ 65,900 $ 42,90e 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:
Raw materials inventory, beginning	10400
Add: Purchases of raw materials	31000
Total raw materials available	41400
Less: Raw materials inventory, ending	18100
Raw materials used in production	23300
Less: Indirect materials included in manufacturing overhead	4550	18750
Direct labor		59600
Manufacturing overhead applied to work in process		87400
Total manufacturing costs		165750
Add: Work in process inventory, beginning		54300
		220050
Less: Work in process inventory, ending		65900
Cost of goods manufactured		154150
2
Schedule of Cost of Goods Sold
Finished goods inventory, beginning	33200
Add: Cost of goods manufactured	154150
Cost of goods available for sale	187350
Less: Finished goods inventory, ending	42900
Unadjusted cost of goods sold	144450
Add: Underapplied overhead	4150
Adjusted cost of goods sold	148600