Exercise 3-3 Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3]

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

Purchases of raw materials	$	31,000
Indirect materials included in manufacturing overhead	$	4,790
Direct labor	$	58,900
Manufacturing overhead applied to work in process	$	87,500
Underapplied overhead	$	4,060

Inventories	Beginning		Ending
Raw materials	$	11,200	$	19,000
Work in process	$	54,100	$	66,400
Finished goods	$	34,100	$	43,400

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.

Complete the question by entering your answers in the tabs below.

• Required 1
• Required 2

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

Primare Corporation
Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw materials inventory	$11,200
Add: Purchases of raw materials	31,000
Total raw materials available	42,200
Less: Ending raw materials inventory	19,000
Raw materials used in production
Less: Indirect materials included in manufacturing overhead	4,790	$(4,790)
Direct labor		58,900
Manufacturing overhead applied to work in process		87,500
Total manufacturing costs		166,010
Add: Beginning work in process inventory		54,100
		220,110
Less: Ending work in process inventory		66,400
Cost of goods manufactured

Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

Primare Corporation
Schedule of Cost of Goods Sold