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 $ 4,880 Direct labor $ 59,100 Manufacturing overhead applied to work in process $ 88,200 Underapplied overhead $ 4,150 Inventories Beginning Ending Raw materials $ 11,300 $ 19,500 Work in process $ 56,000 $ 68,400 Finished goods $ 33,000 $ 43,900

1. 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

The schedule of goods sold have been attached.

SCHEDULE OF GOODS SOLD FOR THE MONTH Direct Materials Beginning Material Inventory Add Cost of material purchased Cost of material available Less Ending Material Inventory Total Material used Less Indirect Material used Direct Material used Add Direct Labor Add Manufacturing Overhead applied Total Manufacturing costs Add Beginning Work in Progress Total Cost Of Work in Progress Less Ending Work in Progress Cost of Goods Manufactured Add Beginning Finished goods Cost of goods available Less Ending Finished goods Cost of goods sold before adjustment Add Underapplied overhead Cost of goods sold $11,300.00 $31,000.00 $42,300.00 $19,500.00 $22,800.00 $4,880.00 $17,920.00 $59,100.00 $88,200.00 $165,220.00 $56,000.00 $221,220.00 $68,400.00 $152,820.00 $33,000.00 $185,820.00 $43,900.00 $141,920.00 $4,150.00 $146,070.00

Note: For calculation of cost of goods sold you need to calculate cost of goods manufactured first then adding beginning finished goods and deducting ending finished goods we get cost of goods sold.