Question

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 $31,000 $ 4,920 $58,700 $88,000 $ 4,050 Inventories Raw materials Work in process Finished goods Beginning $ 11,200 $ 54,300 $ 33,900 Ending $ 18,500 $ 65,800 $ 42,500 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

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A B с D E F G H I 1 2 31000 3 Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor Manufacturing overhead applied to work in process Underapplied overhead 4920 58700 88000 4050 4. 5 6 7 8 9 10 11 Inventories Raw materials Work in process Finished goods Beginning Ending 11200 18500 54300 65800 33900 42500 Schedules of cost of goods manufactured Particulars Amount Amount Direct Materials Raw materials inventory, beginning 11200 Add: Purchases of raw materials 31000 Total raw materials available 42200 Less Raw materials inventory, ending -18500 Raw materials uses in production 23700 Less: Indirect Material included in manufacturing overhead -4920 18780 Direct Labor 58700 Manufacturing overhead applied to WIP 88000 Total Manufacturing costs 165480 Add: Beginning WIP 54300 Total cost of WIP 219780 Less: Ending WIP -65800 Costs of goods manufactured 153980 12 13 14 15 Amount 153980 33900 16 17 Schedules of cost of goods sold Costs of goods manufactured Add: Beginning Finished goods Costs of goods available Less: Ending Finished goods Costs of goods sold before overhead adjustment Add: Under applied overhead Costs of goods sold 18 187880 -425001 1453801 4050 19 20 21 149430 22

For calculation ref:

A B C D E F G H 1 2 3 4 Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor Manufacturing overhead applied to work in process Underapplied overhead 31000 4920 58700 88000 4050 5 6 7 8 Inventories Raw materials Work in process Finished goods Beginning 11200 54300 33900 Ending 18500 65800 42500 9 10 11 12 13 14 Schedules of cost of goods manufactured Particulars Amount Amount Direct Materials Raw materials inventory, beginning =C9 Add: Purchases of raw materials =C2 Total raw materials available =SUM(G5:46) Less Raw materials inventory, ending --09 Raw materials uses in production =G7+G8 Less: Indirect Material included in manufacturing overhead --C3 =G9+G10 Direct Labor =C4 Manufacturing overhead applied to WIP =C5 Total Manufacturing costs =SUM(H10:H12) Add: Beginning WIP =C10 Total cost of WIP =H13+H14 Less: Ending WIP =-D10 Costs of goods manufactured =H15+H16 15 16 17 Schedules of cost of goods sold Costs of goods manufactured Add: Beginning Finished goods Costs of goods available Less: Ending Finished goods Costs of goods sold before overhead adjustment Add: Under applied overhead Costs of goods sold Amount =H17 =C11 =SUM(C15:C16) =-D11 =C17+C18 =+C6 =C19+C20 18 19 20 21 22