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 | $ | 4,860 |
Direct labor | $ | 58,500 |
Manufacturing overhead applied to work in process | $ | 87,200 |
Underapplied overhead | $ | 4,160 |
Inventories | Beginning | Ending | ||
Raw materials | $ | 10,800 | $ | 18,200 |
Work in process | $ | 55,500 | $ | 66,800 |
Finished goods | $ | 33,700 | $ | 42,600 |
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.
1.
Statement of cost of goods manufacture
Raw material, beginning |
10,800 |
Raw material purchase |
32,000 |
Raw material available |
42,800 |
Raw material, ending |
-18,200 |
Indirect material | -4,860 |
Direct material used |
19,740 |
Direct labor |
58,500 |
Manufacturing overhead applied |
87,200 |
Total manufacturing cost |
165,440 |
Work in process, beginning |
55,500 |
Work in process, ending |
-66,800 |
Cost of goods manufactured |
$154,140 |
2.
Schedule of cost of goods sold
Finished goods, beginning |
33,700 |
Cost of goods manufactured |
154,140 |
Cost of goods available for sale |
187,840 |
Finished goods, ending |
-42,600 |
Unadjusted cost of goods sold |
145,240 |
Underapplied manufacturing overhead |
4,160 |
Adjusted cost of goods sold |
$149,400 |
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