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 $32,000 $ 4,850 $58, 200 $88,700 $ 4,180 Inventories Raw materials Work in process Finished goods Beginning $ 10,600 $ 54,500 $ 34,200 Ending $ 19,600 $ 69,700 $ 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

1	Primare Corporation
	SCHEDULE OF COST OF GOODS MANUFACTURED
		$	$
	Direct materials:
	Beginning Raw materials inventory	10,600.00
	Add: Raw materials purchases	32,000.00
	Raw materials available for use	42,600.00
	Less: Ending Raw materials inventory	(19,600.00)
	Raw materials used in production	23,000.00
	Less: Indirect Materials included in manufacturing overhead	(4,850.00)	18,150.00
	Direct labor		58,200.00
	Manufacturing Overhead applied to work in process		88,700.00
	Total manufacturing costs		165,050.00
	Add: Beginning Work in process inventory		54,500.00
	Total cost of work in process		219,550.00
	Less: Ending Work in process inventory		(69,700.00)
	Cost of goods manufactured		149,850.00
	Primare Corporation
2	Schedule of cost of goods sold for the year
		$
	Beginning Finished Goods	34,200.00
	Add: Cost of goods manufactured	149,850.00
	Cost of goods available for sale	184,050.00
	Less: Ending Finished Goods	(42,500.00)
	Unadjusted Cost of goods sold	141,550.00
	Add: Under applied overhead	4,180.00
	Adjusted Cost of goods sold	145,730.00