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$4,680 Direct labor$59,300 Manufacturing overhead applied to work in process$87,100 Underapplied overhead$4,100 Raw materials$11,200$20,000 Work in process$56,000$68,500 Finished goods$34,900$43,700 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.

Answer and Explanation:

1. The Preparation of schedule of cost of goods manufactured for the month is prepared below:-

Primare Corporation

Schedule of Cost of Goods manufactured

Particulars                                                             Amount

Direct Materials:

Beginning Raw Material                      $11,200

Add: Raw Material purchases

during the month                                 $32,000

Total Raw Material available              $43,200

Less: Ending Raw material                   $20,000

Raw Material used in production         $23,200

Less: Indirect Material included in

manufacturing Overhead                       $4,680  $18,520

Add: Direct labor                                                   $59,300

Add: Manufacturing overhead

applied to work in process                                    $87,100

Total Manufacturing Costs                                   $164,920

Add: Beginning Work In Process                           $56,000

Less:  Ending Work in Process                               $68,500

Cost of Goods manufactured                                $152,420

2. The Preparation of schedule of cost of goods sold for the month is prepared below:-

Primare Corporation

Schedule of Cost of Goods Sold

Particulars                                                             Amount

Beginning finished Goods Inventory                    $34,900

Add: Cost of Goods Manufactured                       $152,420

Goods available for sale                                        $187,320

Less: Finished Goods Inventory, Ending               $43,700

Unadjusted cost of goods sold                             $143,620

Add: Under-applied Overhead                               $4,100

Cost of Goods Sold adjusted                                 $147,720

(Under-applied overhead refers that there was less overhead applied that is Actual overheads are more than the overhead applied, thus adding to the cost of the goods sold)

dual credit courses allow you to take a test at the end of the course that, if you pass it with a high enough score, will give you college credit.