Question

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

Purchases of raw materials	$	31,000
Indirect materials used in production	$	4,680
Direct labor	$	59,900
Manufacturing overhead applied to work in process	$	88,800
Underapplied overhead	$	4,030

Inventories	Beginning		Ending
Raw materials	$	10,800	$	19,200
Work in process	$	55,200	$	65,400
Finished goods	$	34,000	$	43,100

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.

Prepare a schedule of cost of goods manufactured for the month. Primare Corporation Schedule of Cost of Goods Manufactured Beginning work in process inventory $ 55,200 Direct materials: $ Beginning raw materials inventory Add: Purchases of raw materials Total raw materials available 10,800 31,000 41,800 19,200 22,600 Less: Ending raw materials inventory Raw materials used in production Less: Indirect materials used in production Direct materials used in production Manufacturing overhead Direct labor 4,680 $ 17,920 88,800 59,900 166,620 Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured 221,820 65,400 156,620 $ Required Required 2

Answer 1

55,200 Solution: Preparation of cost of good smanufactured and COGS: Primare Corporation Schedule of Cost of Goods Manufactured Add: Beginning work in process inventory $ Direct materials: Beginning raw materials inventory $ 10,800 Add: Purchases of raw materials $ 31,000 Total raw materials available $ 41,800 Less: Ending raw materials inventory $ 19,200 Raw materials used in production $ 22,600 Less: Indirect materials used $ 4,680 Direct materials Used $ Direct labor $ Manufacturing overheads $ Total manufacturing costs $ Total Manufacturing cost account for $ $ Less: Ending work in process inventory $ Cost of goods manufactured $ Մ| Մ| Մ| Մ| Մ| ՄՕ 17,920 59,900 88,800 1,66,620 2,21,820 2,21,820 65,400 1,56,420 Primare Corporation Schedule of Cost of Goods Sold Beginning finished goods inventory $ Add: Cost of goods manufactured $ Cost of goods available for sale $ Less: Ending finished goods inventory $ Unadjusted Cost of goods sold $ Add: Underapplied overhead $ Adjusted cost of goods sold $ 34,000 1,56,420 1,90,420 43,100 1,47,320 4,030 1,51,350 * Kindly Comment down for any clarifications/ queries and please upvote.