Primare Corporation has provided the following data concerning last month’s manu

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.

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 sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

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

Explanation / Answer

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

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