Question

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

 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.

Answer 1

Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw materials inventory	11200
Add: Purchases of raw materials	32000
Total raw materials available	43200
Less: Ending raw materials inventory	18600
Raw materials used in production	24600
Less: Indirect materials included in manufacturing overhead	4520	20080
Direct labor		58500
Manufacturing overhead applied to work in process		88100
Total manufacturing costs		166680
Add: Beginning work in process inventory		54400
		221080
Less: Ending work in process inventory		69600
Cost of goods manufactured		151480
Schedule of Cost of Goods Sold
Beginning Finished goods inventory	33900
Add: Cost of goods manufactured	151480
Cost of goods available for sale	185380
Less: Ending Finished goods inventory	43100
Unadjusted cost of goods sold	142280
Add: Underapplied overhead	4150
Adjusted cost of goods sold	146430