Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 32,000 Indirect materials used in production $ 4,680 Direct labor $ 59,400 Manufacturing overhead applied to work in process $ 87,900 Underapplied overhead $ 4,080 Inventories Beginning Ending Raw materials $ 11,600 $ 19,700 Work in process $ 54,700 $ 69,300 Finished goods $ 34,100 $ 42,300
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Primare Corporation has provided the following data concerning last month’s manufacturing operations.
| Purchases of raw materials | $ 32,000 |
|---|---|
| Indirect materials used in production | $ 4,680 |
| Direct labor | $ 59,400 |
| Manufacturing |
$ 87,900 |
| Underapplied overhead | $ 4,080 |
| Inventories | Beginning | Ending |
|---|---|---|
| Raw materials | $ 11,600 | $ 19,700 |
| Work in process | $ 54,700 | $ 69,300 |
| Finished goods | $ 34,100 | $ 42,300 |
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Hello,
I believe Answer 1 may have some errors. You included $4080 as the "indirect material used in production" but the original table has it listed as 4680. This may have changed the remainder of the answer including the "total
by Bartleby Expert
