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	$	4,900
Direct labor	$	59,900
Manufacturing overhead applied to work in process	$	88,300
Underapplied overhead	$	4,100

Inventories	Beginning		Ending
Raw materials	$	10,800	$	19,400
Work in process	$	54,100	$	69,500
Finished goods	$	35,000	$	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.

Answer 1

Primare Corporation
Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	10,800.00
Raw material Purchased	31000.00
Raw material available for use	41800.00
Less: Raw material Inventory Ending	19400.00
Direct Material Used		22400.00
Direct labor		59900.00
Total Manufacturing Overheads Applied		88300.00
Total manufacturing Cost incurred during the period		170600.00
Add: Work in process Beginning		54100.00
Total Manufacturing cost to account for		224700.00
Less: Work in progress Ending		69500.00
Cost of Goods Manufactured		155200.00

Primare Corporation
Schedule of cost of good sold
Beginning Finished Goods Inventory		$        35,000.00
Cost of Goods manufactured		$    1,55,200.00
Goods Available for sale		$    1,90,200.00
Less :Ending Finished goods Inventory		$        42,800.00
Unadjusted Cost of Goods Sold		$    1,47,400.00
Underapplied Manufacturing Overheads		$          4,100.00
Adjusted Cost og Goods sold		$    1,51,500.00