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

Purchases of raw materials	$	32,000
Indirect materials included in manufacturing overhead	$	4,780
Direct labor	$	58,100
Manufacturing overhead applied to work in process	$	87,300
Underapplied overhead	$	4,040

Inventories	Beginning		Ending
Raw materials	$	10,700	$	18,700
Work in process	$	54,300	$	67,600
Finished goods	$	33,800	$	42,800

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.

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	$10,700
Add: Purchases of raw materials	32,000
Total raw materials available	42,700
Less: Ending raw materials inventory	187,000
Raw materials used in production	24,000
Less: Indirect materials included in manufacturing overhead		$24,000
Direct labor		58,100
Manufacturing overhead applied to work in process		87,300
Total manufacturing costs		165,240
Add: Beginning work in process inventory		54,300
		219,540
Less: Ending work in process inventory		67,600
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
Beginning finished goods inventory	$33,800
Add: Cost of goods manufactured
Cost of goods available for sale
Less: Ending finished goods inventory
Unadjusted cost of goods sold
Add: Underapplied overhead
Adjusted cost of goods sold