Question

Check my work mode: This shows what is correct or incorrect for the work you have complete 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 $ 32,000 $ 4,740 $ 60,000 $ 88, 900 $ 4,160 Inventories Raw materials Work in process Finished goods Beginning $ 10,300 $ 55,200 $ 34,300 Ending $ 18,600 $ 67,900 $ 43,700 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 Goods Sold.

Answer 1

Primare Corporation
Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw materials inventory	10,300
Add: Purchase of raw materials	32,000
Total raw materials available	42,300
Less:Ending raw materials inventory	18,600
Raw materials used in production	23,700
Less: indirect materials included in manufacturing overhead	4,740	18,960
Direct labor		60,000
Manufacturing overhead applied to work in process		88,900
Total manufacturing costs		167,860
Add: Beginning work in process inventory		55,200
		223,060
Less: Ending work in process inventory		-67,900
Cost of goods manufactured		$155,160

Primare Corporation
Schedule of Cost of Goods Sold
Beginning finished goods inventory	34,300
Add: Cost of goods manufactured	155,160
Cost of goods available for sale	189,460
Less:Ending finished goods inventory	-43,700
Unadjusted cost of goods sold	145,760
Add: Under applied overhead	4,160
Adjusted cost of goods sold	$149,920

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