Answer:
Primare Corporation
1. A Schedule of Cost of Goods Manufactured for the month:
Beginning WIP Â Â Â Â Â $55,100
Raw materials used   18,000
Direct labor         58,500
Manufacturing o/h    88,500
Ending Balance     (68,400)
                $151,700
2. A Schedule of Cost of Goods Sold for the month:
Finished goods inventory  $34,100
Cost of manufacturing     151,700
Ending Finished goods    (42,200)
Underapplied overhead      4,170
Cost of goods sold       $147,770
Explanation:
a) Data and Calculations:
Purchases of raw materials $30,000
Indirect materials included in manufacturing overhead $4,900
Direct labor $58,500
Manufacturing overhead applied to work in process $88,500
Underapplied overhead $4,170
Inventories      Beginning    Ending
Raw materials      $11,100    $18,200
Work in process   $55,100    $68,400
Finished goods   $34,100    $42,200
Raw materials
Beginning Balance  $11,100
Purchase          30,000
Manufacturing overhead     $4,900
Work in process             18,000
Ending Balance            $18,200
Work in process
Beginning Balance  $55,100
Raw materials       18,000
Direct labor         58,500
Manufacturing o/h   88,500
Finished goods            $151,700
Ending Balance            $68,400
Finished goods
Beginning Balance  $34,100
WIP Â Â Â Â Â Â Â Â Â Â Â Â Â Â 151,700
Cost of goods sold        $143,600
Ending Balance           $42,200
