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 $ 5,000 $ 58,000 $ 87,000 $ 4,000 Inventories Raw materials Work in process Finished goods Beginning Ending $ 12,000 $18,000 $ 56,000 $ 65,000 $ 35,000 $ 42,000 ods 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 this question by entering your answers in the tabs below.

Answer 1

1	Primare Corporation
	SCHEDULE OF COST OF GOODS MANUFACTURED
		$	$
	Direct materials:
	Beginning Raw materials inventory	12,000.00
	Add: Raw materials purchases	30,000.00
	Raw materials available for use	42,000.00
	Less: Ending Raw materials inventory	(18,000.00)
	Raw materials used in production	24,000.00
	Less: Indirect Materials included in manufacturing overhead	(5,000.00)	19,000.00
	Direct labor		58,000.00
	Manufacturing Overhead applied to work in process		87,000.00
	Total manufacturing costs		164,000.00
	Add: Beginning Work in process inventory		56,000.00
	Total cost of work in process		220,000.00
	Less: Ending Work in process inventory		(65,000.00)
	Cost of goods manufactured		155,000.00
	Primare Corporation
2	Schedule of cost of goods sold for the year
		$
	Beginning Finished Goods	35,000.00
	Add: Cost of goods manufactured	155,000.00
	Cost of goods available for sale	190,000.00
	Less: Ending Finished Goods	(42,000.00)
	Unadjusted Cost of goods sold	148,000.00
	Add: Under applied overhead	4,000.00
	Adjusted Cost of goods sold	152,000.00