Question

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

Purchases of raw materials	$	30,000
Indirect materials included in manufacturing overhead	$	4,750
Direct labor	$	58,200
Manufacturing overhead applied to work in process	$	88,600
Underapplied overhead	$	4,180

Inventories	Beginning		Ending
Raw materials	$	10,900	$	19,600
Work in process	$	55,400	$	69,400
Finished goods	$	34,200	$	43,900

Required:

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

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

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 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

Purchases of raw materials				$       30,000
Indirect materials included in manufacturing overhead				$         4,750
Direct labor				$       58,200
Manufacturing overhead applied to work in process				$       88,600
Underapplied overhead				$         4,180
Inventories	Beginning	Ending
Raw materials	10,900	19,600
Work in process	55,400	69,400
Finished goods	34,200	43,900
1. Statement Showing Cost of Gods Manufactured
Direct Material Used
beginning Raw Material Inventory,			$         10,900
Add: Raw Material Purchased			$         30,000
Less: Closing Raw Material Inventory			$       (19,600)
Raw Material Used				$          21,300
Less: Indirect Material Used				$          (4,750)
Direct Materal Used				$          16,550
Add: Direct Labour Incurred				$          58,200
Add: Manufacturing overhead applied				$          88,600
Total Manufacturing Cost added this period				$        163,350
Add: Beginning Work in Progress				$          55,400
Total Work in Progress				$        218,750
Less: Closing WIP Inventory				$        (69,400)
Cost of Goods Manufacured				$        149,350
1. Statement Showing Cost of Gods Sold for just completed month
Cost of Goods Sold
Beginning Finished Goods Inventory				$          34,200
Add: Cost of Goods Manufactured				$        149,350
Cost of Goods Available for Sale				$        183,550
Less: Closing Finished Goods Inventory				$        (43,900)
Unadjusted Cost of Goods Sold				$        139,650
Add: Underapplied Overhead				$            4,180
adjusted Cost of Goods Sold				$        143,830