Question

_{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 $31,000 $ 4,800 $59,600 $88,400 $ 4,180 Inventories Raw materials Work in process Finished goods Beginning $ 10,500 $ 54,800 $ 34,000 Ending $ 18,500 $ 70,000 $ 42,700 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.}

Answer 1

Answer of Part 1: Primare Corporation Schedules of Cost of Goods Manufactured Direct Materials: Beginning Raw Materials 10500 Add: Purchases of Raw Materials 31000 Cost of Materials Available 41500 Less: Ending Raw Material 18500 Total Materials Used 23000 Less: Indirect Material Used 4800 Direct Materials Used Direct Labor Manufacturing Overhead Applied Total Manufacturing Costs Add: Beginning Work in process Total Cost of Work in Process Less: Ending Work in process Cost of Goods Manufactured 182001 596001 88400 166200 54800 221000 70000 151000 Answer of Part 2: Primare Corporation Schedules of Cost of Goods Sold Beginning Finished Goods Add: Cost of Goods Manufactured Cost of Goods Available for Sale Less: Ending Finished Goods Cost of Goods Sold before Overhead adjustment Add: Underapplied Overhead Cost of Goods Sold 34000 151000 185000 42700 142300 4180 146480