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 $12,000 $56,000 $35,000 Ending $18,000 $65,000 $42,000

Answer 1

uliol Primare Corporation Schedule & cast of goods Manufactureh C Amount (1) Amounty) Dlyecto Materials Beginning raw materials inventory $12,000 Add: purchases of raw materials $ 30,000 Total Raw Materials available : $42.000 Less. Ending raw materials inventory $(18,000) Raw Materials used in production : $24,000 Less. Indirect materials included $15,000) $19.000 - in manufacturing overhead Direct Labor $58,000 Manufacturing overhead applied to wIP $87,000 Total Manufacturing costs $1641000 Add: Beginning wIP Inventory $ 56,000 $220.000 Less: Ending w IP Inventory $ 65,000) cost of goods manufactured $ 155,000

Primare corporation schedule of cost of good sold Beginning Finished goods Inventory Add: Cost of goods manufactured cost of goods available for sale Less: Ending Finished goole inventory unadjusted cost of goods sold Addis under applied overhead Adjusted cost of goods sold Amount:($) $35,000 $ 155,000 $190,000 $(42,000) $168.000 $ 4,000 $152,000 Note's -D WIP = work in process

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