Question

Exercise 3-3 (Algo) 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 used in production Direct labor Manufacturing overhead applied to work in process Underapplied overhead $30,000 $ 4,840 $58,300 $88,700 $ 4,100 Inventories Raw materials Work in process Finished goods Beginning $ 11,600 $ 54,600 $ 33,700 Ending $ 18,900 $ 68,200 $ 42,900 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	Primare Corporation
	SCHEDULE OF COST OF GOODS MANUFACTURED
		$	$
	Direct materials:
	Beginning Raw materials inventory	11600.00
	Add: Raw materials purchases	30,000.00
	Raw materials available for use	41600.00
	Less: Ending Raw materials inventory	(18900.00)
	Raw materials used in production	22,700.00
	Less: Indirect Materials included in manufacturing overhead	(4840.00)	17,860.00
	Direct labor		58,300.00
	Manufacturing Overhead applied to work in process		88,700.00
	Total manufacturing cost		164860.00
	Add: Beginning Work in process inventory		54600.00
	Total cost of work in process		219460.00
	Less: Ending Work in process inventory		(68,200.00)
	Cost of goods manufactured		151260.00
	Primare Corporation
2	Schedule of cost of goods sold for the year
		$
	Beginning Finished Goods	33,700.00
	Add: Cost of goods manufactured	151260.00
	Cost of good available for sale	184960.00
	Less: Ending Finished Goods	(42900.00)
	Unadjusted Cost of goods sold	142060.00
	Add: Under applied overhead	4,100.00
	Adjusted cost of good sold	146160.00