Question

Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor Manufacturing overhead applied to work in process Underapplied overhead $30,000 $ 4,500 $59,400 $87,400 $ 4,000 Inventories Raw materials Work in process Finished goods Beginning $ 11,600 $ 54,800 $ 34,100 Ending $ 19,600 $ 68, 700 42,800 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. Complete the question by entering your answers in the tabs below. Required 1 Required 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. Primare Corporation

Answer 1

1)
Primare Company Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, Beginning	$ 11,600
Add: Purchases of raw materials	$ 30,000
Total raw materials available	$ 41,600
Less : Raw materials inventory, Ending	($ 19,600)
Raw materials used in production		$ 22,000
Direct labor		$ 59,400
Manufacturing overhead applied to work in process inventory		$ 87,400
Total Manufacturing costs		$ 168,800
Add: Beginning work in process inventory		$ 54,800
		$ 223,600
Less : Ending work in process inventory		($ 68,700)
Cost of Goods manufactured		$ 154,900

2)
Primare Company Schedule of Cost of Goods Sold
Finished goods inventory, Beginning	$ 34,100
Add: Cost of goods manufactured	$ 154,900
Cost of goods available for sale	$ 189,000
Less : Finished goods inventory, Ending	($ 42,800)
Unadjusted cost of goods sold	$ 146,200
Add: Underapplied overhead	$ 4,000
Adjusted cost of goods sold	$ 150,200