Question

Primare Corporation has provided the following data concerning last month’s manufacturing operations.

Purchases of raw materials	$	31,000
Indirect materials included in manufacturing overhead	$	4,770
Direct labor	$	59,900
Manufacturing overhead applied to work in process	$	87,500
Underapplied overhead	$	4,090

Inventories	Beginning		Ending
Raw materials	$	10,400	$	18,800
Work in process	$	55,400	$	67,200
Finished goods	$	34,900	$	42,500

Required:

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

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 $0 Total manufacturing costs 0 Cost of goods manufactured

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.

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

Req. 1

Primare Corporation
Schedules of cost of goods manufactured
	Amount $
Direct Materials
Beginning materials Inventory	10,400
Cost of material purchased	31,000
Cost of material available	$ 41,400
Less: Ending materials Inventory	(18,800)
Total Material used	$22,600
Less: Indirect Material used	(4770)
Direct Material used		$17,830
Direct Labor		59,900
Manufacturing overhead applied		87,500
Total Manufacturing costs		$165,230
Add: Beginning WIP		55,400
Total cost of WIP		$220,630
Less: Ending WIP		($67,200)
Costs of goods manufactured		$153,430

Req.2

Schedules of cost of goods sold
Costs of goods manufactured	153,430
Add: Beginning Finished goods	34,900
Costs of goods available	$188,330
Less: Ending Finished goods	($42,500)
Costs of goods sold before overhead adjustment	$145,830
Add: Under applied overhead	4090
Costs of goods sold	$149,920