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	$	4,650
Direct labor	$	59,500
Manufacturing overhead applied to work in process	$	87,800
Underapplied overhead	$	4,180

Inventories	Beginning		Ending
Raw materials	$	10,000	$	18,200
Work in process	$	55,700	$	66,200
Finished goods	$	33,200	$	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 Cost of Goods Sold.

• Required 1
• Required 2

Prepare a schedule of cost of goods manufactured for the month.

	Primare Corporation Schedule of Cost of Goods Manufactured Direct materials: Beginning raw materials inventory $10,000 Add: Purchases of raw materials 30,000 Total raw materials available Raw materials used in production $0 Total manufacturing costs 0 Cost of goods manufactured

Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

	Primare Corporation Schedule of Cost of Goods Sold

Answer 1

Answer of Part 1: PRIMARE CORPORATION Schedule of Cost of Goods Manufactured Direct Materials: Beginning Raw Materials Inventory Add: Purchases of Raw Materials Total Raw Materials Available Less: Ending Raw Materials Invnetory Raw Materials used in Production Less: Indirect Materials included in Manufacturing Overhead Direct Labor Manufacturing Overhead Applied to Work in Process Total Manufacturing Costs Add: Beginning Work in Process Inventory 10000 30000 40000 18200 21800 4650 17150 59500 87800 164450 55 700 220150 66200 153950 Less: Ending Work in Process Inventory Cost of Goods Manufactured Answer of Part 2: PRIMARE CORPORATION Schedule of Cost of Goods Sold Beginning Finished Goods Inventory Add: Cost of Goods Manufactured Cost of Goods Available for Sale Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Add: Underapplied Overhead Adjusted Cost ofGoods Sold 33200 153950 187150 43700 143450 4180 147630