Question

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

Purchases of raw materials	$	31,000
Indirect materials included in manufacturing overhead	$	4,660
Direct labor	$	59,100
Manufacturing overhead applied to work in process	$	88,300
Underapplied overhead	$	4,110

  

Inventories	Beginning		Ending
Raw materials	$	10,500	$	19,400
Work in process	$	55,700	$	67,300
Finished goods	$	33,100	$	42,600

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.

      

Answer 1

Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning	10500
Add: Purchases of raw materials	31000
Total raw materials available	41500
Deduct: Raw materials inventory, ending	19400
Raw materials used in production	22100
Less: Indirect materials included in manufacturing overhead	4660	17440
Direct labor		59100
Manufacturing overhead applied to work in process inventory		88300
Total manufacturing costs		164840
Add: Beginning work in process inventory		55700
		220540
Deduct: Ending work in process inventory		67300
Cost of goods manufactured		153240
Schedule of Cost of Goods Sold
Finished goods inventory, beginning	33100
Add: Cost of goods manufactured	153240
Cost of goods available for sale	186340
Deduct: Finished goods inventory, ending	42600
Unadjusted cost of goods sold	143740
Add: Underapplied overhead	4110
Adjusted cost of goods sold	147850