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					Check Your Work                                                                                           http://ezto.mhhm.mcgraw-hill.com/hm.tpx




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          3.      value:
                  20 points

                    Primare Corporation has provided the following data concerning last month's manufacturing operations.


                     Purchases of raw materials                              $30,000
                     Indirect materials included in manufacturing
                                                                              $5,000
                    overhead
                     Direct labor                                            $58,000
                     Manufacturing overhead applied to work in process       $87,000
                     Underapplied overhead                                    $4,000

                      Inventories          Beginning Ending
                      Raw materials        $12,000 $18,000
                      Work in process      $56,000 $65,000
                      Finished goods       $35,000 $42,000

                    Requirement 1:
                    Prepare a schedule of cost of goods manufactured for the month. (Input all amounts as positive
                    values. Omit the "$" sign in your response.)

                                                                         Primare Corporation
                                                                Schedule of Cost of Goods Manufactured
                      Direct materials:
                                                                                                          $       12000
                           Raw materials inventory, beginning

                           Add                 : Purchase of raw materials                                      30000
                           Total raw materials available                                                        42000
                           Deduct              : Raw materials inventory, ending                                18000
                           Raw materials used in production                                                     24000
                                                                                                                             $    19000
                           Less                : Indirect materials included in manufacturing overhead            5000

                       Direct labor                                                                                              58000

                       Manufacturing overhead applied to work in process inventory                                               87000
                      Total manufacturing cost                                                                                   164000
                       Add                  : Beginning work in process inventory                                                56000
                                                                                                                                 220000
                       Deduct               : Ending work in process inventory                                                   65000
                                                                                                                             $   155000
                      Cost of goods manufactured


                    Requirement 2:
                    Prepare a schedule of cost of goods sold for the month. (Input all amounts as positive values. Omit
                    the "$" sign in your response.)

                                                      Primare Corporation
                                                 Schedule of Cost of Goods Sold




1 of 2                                                                                                                               2/13/11 8:04 PM
Check Your Work                                                                                             http://ezto.mhhm.mcgraw-hill.com/hm.tpx


                                                                                           $        35000
                  Finished goods inventory, beginning

                  Add                : Cost of goods manufactured                                155000
                  Goods available for sale                                                       190000
                  Deduct             : Finished goods inventory, ending                            42000
                  Unadjusted cost of goods sold                                                  148000
                  Add                : Underapplied overhead                                        4000
                                                                                           $       152000
                  Adjusted cost of goods sold




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2 of 2                                                                                                                             2/13/11 8:04 PM