Question

Primare Corporation has provided the following data concerning last month’s manufacturing operations.

Purchases of raw materials	$	30,000
Indirect materials included in manufacturing overhead	$	4,570
Direct labor	$	58,800
Manufacturing overhead applied to work in process	$	88,600
Underapplied overhead	$	4,190

Inventories	Beginning		Ending
Raw materials	$	11,300	$	19,700
Work in process	$	54,400	$	67,900
Finished goods	$	34,000	$	43,900

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

Answer-1)-

PRIMARE CORPORATION
COST OF GOODS MANUFACTURED REPORT
PARTICULARS	AMOUNT	AMOUNT
	$	$
Direct materials:-
Beginning Raw Materials Invenotry	11300
Add- Raw Material Purchases	30000
Total raw materials available	41300
Less-Ending Raw Material Inventory	19700
Raw Materials Used in production	21600
Less- Indirect materials included in manufacturing overhead	4570	17030
Direct Labor		58800
Manufacturing Overhead applied to work in process		88600
Total current manufacturing costs		164430
Add- Beginning Work in Process Invenotry		54400
Total work in process		218830
Less- Ending Work in Process Invenotry		67900
Cost of goods manufactured		150930

2)-

PRIMARE CORPORATION
COST OF GOODS SOLD
PARTICULARS		Amount
		$
Beginning finished goods inventory		34000
Add: Cost of goods manufactured		150930
Cost of goods available for sale		184930
Less: Ending finished goods inventory		43900
Unadjusted Cost of goods sold		141030
Add- Underapplied overhead		4190
Adjusted Cost of goods sold		145220