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	$	4,860
Direct labor	$	58,800
Manufacturing overhead applied to work in process	$	88,600
Underapplied overhead	$	4,070

Inventories	Beginning		Ending
Raw materials	$	10,700	$	19,400
Work in process	$	55,500	$	66,300
Finished goods	$	34,300	$	43,500

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.