Question

I ALWAYS THUMBS UP, THANKS

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 $ 4,960 Direct labor $ 60,000 Manufacturing overhead applied to work in process $ 88,100 Underapplied overhead $ 4,100 Inventories Raw materials Work in process Finished goods Beginning Ending $ 10,100 $ 19,500 $ 54,400 $65.400 $ 34,400 $43,400 Required: 1. Prepare a schedule of cost of goods manufactured for the month. Primare Corporation Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured

Answer 1

Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw materials inventory	10100
Add: Purchases of raw materials	30000
Total raw materials available	40100
Less: Ending raw materials inventory	19500
Raw materials used in production	20600
Less: Indirect materials included in manufacturing overhead	4960	15640
Direct labor		60000
Manufacturing overhead applied to work in process		88100
Total manufacturing costs		163740
Add: Beginning work in process inventory		10100
		173840
Less: Ending work in process inventory		19500
Cost of goods manufactured		154340

Schedule of Cost of Goods sold
Finshed goods Invetory	$                       34,400.00
Add Cost of Goods manufactured	$                    1,54,340.00
Goods available for Sales	$                    1,88,740.00
Less Ending Finished Good Inventory	$                       43,400.00
Unadjusted Cost of Goods Sold	$                    1,45,340.00
Add Underapplied Overheads	$                          4,100.00
Adjusted Cost of Goods sold	$                    1,49,440.00