Question

exercise 3-3 (algo) schedules of cost of goods manufactured and cost of goods sold lo3-3

primare corporation provided the following data for last months manufacturing operations.

purchases of raw materials: $ 30,000
indirect materials used in production: $ 4,540
direct labor: $ 59,700
manufacturing overhead applied to work in process: $ 87,000
underapplied overhead: $ 4,120

inventories:
raw materials: beginning $ 11,800, ending $ 18,300
work in process: beginning $ 55,400, ending $ 68,700
finished goods: beginning $ 34,800, ending $ 43,500

required:

1. prepare a schedule of cost of goods manufactured.
2. prepare a schedule of cost of goods sold. assume the underapplied or overapplied overhead is closed to cost of goods sold.

Explanation:

Calculate Raw Materials Used in Production

Using the Schedule of Cost of Goods Manufactured knowledge point

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LATEXBLOCK0
$$

Calculate Cost of Goods Manufactured

Using the Schedule of Cost of Goods Manufactured knowledge point

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LATEXBLOCK1
$$

Calculate Cost of Goods Sold

Using the Schedule of Cost of Goods Sold knowledge point

$$
LATEXBLOCK2
$$

Answer:

Question 1

Primare Corporation
Beginning work in process inventory		\$ 55,400
Direct materials:
    Beginning raw materials inventory	\$ 11,800
    Add: Purchases of raw materials	30,000
    Total raw materials available	41,800
    Less: Ending raw materials inventory	(18,300)
    Raw materials used in production		\$ 23,500
Direct labor		59,700
Manufacturing overhead applied to work in process		87,000
Total manufacturing costs added to production		170,200
Total manufacturing costs to account for		225,600
Less: Ending work in process inventory		(68,700)
Cost of goods manufactured		\$ 152,300

Question 2

Primare Corporation
Beginning finished goods inventory	\$ 34,800
Add: Cost of goods manufactured	152,300
Cost of goods available for sale	187,100
Less: Ending finished goods inventory	(43,500)
Unadjusted cost of goods sold	143,600
Add: Underapplied overhead	4,120
Adjusted cost of goods sold	\$ 147,720