Exercise 2-6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO2-6]

Primare Corporation has provided the following data concerning last months manufacturing operations.

Purchases of raw materials	$	30,000
Indirect materials included in manufacturing overhead	$	5,000
Direct labor	$	58,000
Manufacturing overhead applied to work in process	$	87,000
Underapplied overhead	$	4,000

Inventories	Beginning		Ending
Raw materials	$	12,000	$	18,000
Work in process	$	56,000	$	65,000
Finished goods	$	35,000	$	42,000

Required:

1.	Prepare a schedule of cost of goods manufactured for the month.

Primare Corporation

Schedule of Cost of Goods Manufactured

Direct materials:

Total raw materials available

Raw materials used in production

Total manufacturing costs

Cost of goods manufactured

2.

Prepare a schedule of cost of goods sold for the month.

Primare Corporation
Schedule of Cost of Goods Sold
Finished goods inventory, beginning
Goods available for sale
Unadjusted cost of goods sold
Adjusted cost of goods sold