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 $31,000 $ 4,840 $59.900 $88,600 $ 4,180 Ending Inventories Raw materials Work in process Finished goods Beginning $10,200 $ 54,200 $33,300 Ending $ 19,000 $ 69, 700 $ 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 the question by entering your answers in the tabs belo Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the month.

Answer 1

Answer 2

1	Primare Corporation
	Schedule of Cost of   Goods Manufactured
	Direct Materials:
	Beginning raw material   inventory	10,200
	Add: Purchase of raw material	31,000
	Total raw material available	41,200
	Less Ending raw material	19,000
	Raw materail used in production	22,200
	Less: Indirect materials   included in manufacturing overhead	4,840	17,360
	Direct Labour		59,900
	Manufacturing overhead applied to work in process		88,600
	Total manufacturing cost added to production		165,860
	Add: Beginning WIP Inventory		54,200
	Total manufacturing cost to be account for		220,060
	Less: Ending WIP Inventory		69,700
	Cost of Goods manufactured		150,360
2	Primare Corporation
	Schedule of Cost of   Goods Sold
	Beginning Finished goods inventory	33,300
	Add: Cost of goods manufactured	150,360
	Cost of goods available for sale	183,660
	Less: Ending Finished goods inventory	43,500
	Unadjusted cost of goods sold	140,160
	Add: Underapplied overhead	4,180
	Adjusted cost of goods sold	144,340