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 $4,900
Direct labor $58,500
Manufacturing overhead applied to work in process $88,500
Underapplied overhead $4,170
Inventories Beginning Ending
Raw materials $11,100 $18,200
Work in process $55,100 $68,400
Finished goods $34,100 $42,200
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

1. A Schedule of Cost of Goods Manufactured for the month:

Beginning WIP $55,100

Raw materials used 18,000

Direct labor 58,500

Manufacturing o/h 88,500

Ending Balance (68,400)

$151,700

2. A Schedule of Cost of Goods Sold for the month:

Finished goods inventory $34,100

Cost of manufacturing 151,700

Ending Finished goods (42,200)

Underapplied overhead 4,170

Cost of goods sold $147,770

Step-by-step explanation:

a) Data and Calculations:

Purchases of raw materials $30,000

Indirect materials included in manufacturing overhead $4,900

Direct labor $58,500

Manufacturing overhead applied to work in process $88,500

Underapplied overhead $4,170

Inventories Beginning Ending

Raw materials $11,100 $18,200

Work in process $55,100 $68,400

Finished goods $34,100 $42,200

Raw materials

Beginning Balance $11,100

Purchase 30,000

Manufacturing overhead $4,900

Work in process 18,000

Ending Balance $18,200

Work in process

Beginning Balance $55,100

Raw materials 18,000

Direct labor 58,500

Manufacturing o/h 88,500

Finished goods $151,700

Ending Balance $68,400

Finished goods

Beginning Balance $34,100

WIP 151,700

Cost of goods sold $143,600

Ending Balance $42,200