Primare Corporation has provided the following data concerni

Primare Corporation has provided the following data concerning last month\'s manufacturing operations. Purchases of raw materials Indirect materials included in manufacturing overhead $ 4,930 Direct labor Manufacturing overhead applied to work in process $87,100 Underapplied overhead $32,000 $58,800 4,000 Inventories Raw materials Beginning Ending $10,900 $19,500 ork in process $54,200 $66,200 Finished goods $33,900 $43,000

Solution

Answer

1) Schedule of Cost of Goods manufactured

Primare Corporation

Schedule of Cost of Goods Manufactured

Direct Materials:

Beginning Raw Material

10900

(+) Raw Material purchases during the month

32000

Total Raw Material available

42900

(-) Ending Raw material

19500

Raw Material used in production

23400

(-) Indirect Material included in manufacturing Overhead

4930

18470

(+) direct labor

58800

(+) Manufacturing overhead applied to work in process

87100

Total Manufacturing Costs

164370

(+) Beginning Work In Process

54200

218570

(-) Ending Work in Process

66200

Cost of Goods manufactured

152370

2) Schedule of Cost of Goods Sold

Primare Corporation

Schedule of Cost of Goods Sold

Finished Goods Inventory, beginning

33900

(+) Cost of Goods Manufactured

152370

Goods available for sale

186270

(-) Finished Goods Inventory, Ending

43000

Unadjusted cost of goods sold

143270

(+) Under-applied Overhead

4,000

Adjusted Cost of Goods Sold

152,000

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the

Primare Corporation
Schedule of Cost of Goods Manufactured
Direct Materials:
Beginning Raw Material	10900
(+) Raw Material purchases during the month	32000
Total Raw Material available	42900
(-) Ending Raw material	19500
Raw Material used in production	23400
(-) Indirect Material included in manufacturing Overhead	4930	18470
(+) direct labor		58800
(+) Manufacturing overhead applied to work in process		87100
Total Manufacturing Costs		164370
(+) Beginning Work In Process		54200
		218570
(-) Ending Work in Process		66200
Cost of Goods manufactured		152370