Question

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

Purchases of raw materials	$	31,000
Indirect materials included in manufacturing overhead	$	4,720
Direct labor	$	59,700
Manufacturing overhead applied to work in process	$	87,100
Underapplied overhead	$	4,130

Inventories	Beginning		Ending
Raw materials	$	10,900	$	18,300
Work in process	$	55,100	$	69,600
Finished goods	$	34,800	$	43,100

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

1.

Schedule of cost of goods manufactured

Raw material, beginning	10,900
Purchase of raw material	31,000
Total raw material available	41,900
Raw material, ending	-18,300
Direct material used	23,600
Direct labor	59,700
Manufacturing overhead applied	87,100
Total manufacturing cost	170,400
Work in process, beginning	55,100
Work in process, ending	-69,600
Cost of goods manufactured	$155,900

2.

Schedule of cost of goods sold

Finished goods, beginning	34,800
Cost of goods manufactured	155,900
Cost of goods available for sale	190,700
Finished goods, ending	-43,100
Unadjusted cost of goods sold	147,600
Under applied overhead	4,130
Cost of goods sold	$151,730

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