Question

Purchases of raw materials Indirect materials used in production Direct labor Manufacturing overhead applied to work in process Underapplied overhead $30,000 $ 4,800 $58,400 $88,400 $ 4, 120 Inventories Raw materials Work in process Finished goods Beginning $ 10,800 $ 54,500 $ 34,400 Ending $ 19,600 $ 69,400 $ 43,500 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 Complete this 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 Schedule of Cost of Goods Sold Add: Ending finished goods inventory < Required 1

Answer 1

Calculate cost of goods manufactured for the month as shown below:
Schedule of cost of goods manufactured
Beginning work in process inventory		$54,500
Direct material used:
Beginning raw material inventory	$10,800
Add: Purchases of raw materials	$30,000
Total raw material available for use	$40,800
Less: Ending raw material inventory	$19,600
Less: Indirect material used in production	$4,800
Direct material used		$16,400
Direct labor costs		$58,400
Manufacturing overhead applied		$88,400
Less: Ending work in process inventory		-$69,400
Cost of goods manufactured		$148,300
Schedule of cost of goods sold
Schedule of cost of goods sold
Cost of goods manufactured	$148,300
Add: Beginning finished goods inventory	$34,400
Total cost of goods available for sale	$182,700
Less: Ending finished goods inventory	$43,500
Unadjusted cost of goods sold	$139,200
Add: Underapplied overhead	$4,120
Adjusted cost of goods sold	$143,320