Question

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

Purchases of raw materials	$	32,000
Indirect materials included in manufacturing overhead	$	4,530
Direct labor	$	59,300
Manufacturing overhead applied to work in process	$	87,600
Underapplied overhead	$	4,060

Inventories	Beginning		Ending
Raw materials	$	11,400	$	19,300
Work in process	$	54,400	$	66,300
Finished goods	$	33,800	$	43,300

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.

Prepare a schedule of cost of goods manufactured for the month.

	Primare Corporation Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured

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

Answer 1

Primare Corporation
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning	11400
Add: Purchases of raw materials	32000
Total raw materials available	43400
Less: Raw materials inventory, ending	19300
Raw materials used in production	24100
Less: Indirect materials included in manufacturing overhead	4530	19570
Direct Labor		59300
Manufacturing overhead applied to work in process inventory		87600
Total manufacturing costs		166470
Add: Work in process inventory, beginning		54400
		220870
Less: Work in process inventory, ending		66300
Cost of goods manufactured		154570
2
Finished goods inventory, beginning	33800
Add: Cost of goods manufactured	154570
Cost of goods available for sale	188370
Deduct: Finished goods inventory, ending	43300
Unadjusted cost of goods sold	145070
Add: Underapplied overhead	4060
Adjusted cost of goods sold	149130