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 $32,000 $ 4,980 $59,100 $88,300 $ 4,040 Inventories Raw materials Work in process Finished goods Beginning $ 10,900 $ 55,700 $ 34,900 Ending $ 18,100 $ 67,700 $ 42,500 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 with working is given below

Primare Corporation Schedule of Cost of Goods Manufactured Direct Mateiral Opening inventory of Raw Material $10,900 Add: purchases $32,000 Total Raw Material Available $42,900 Less: Closing inventory of Raw Material $18,100 Raw material used in production $24,800 Less: Indirect material used $4,980 Direct Labor Prime Cost Manufacutirng Overhead applied Total manufacturing cost Add: Opening work in process inventory $19,820 $59,100 $78,920 $88,300 $167,220 $55,700 $222,920 $67,700 $155,220 Less: Closing work in process inventory Cost of Goods Manufactured Primare Corporation Schedule of Cost of Goods Sold Opening Finished Goods inventory Add: Cost of Goods manufactured Cost of Goods available for sale Less: Closing Finished Goods inventory Unadjusted Cost of Goods Sold Add: Under-applied overhead Adjusted Cost of Goods sold $34,900 $155,220 As per working above $190,120 $42,500 $147,620 $4,040 $151,660