Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials Indirect materials used in production Direct labor $31, 000 $ 4,550 $59,800 $88,400 $ 4,170 Manufacturing overhead applied to work in process Underapplied overhead Inventories Beginning $ 11,100 $ 55,700 $ 33,700 Ending $ 18,600 $ 69, 800 $ 43,200 Raw materials Work in process Finished goods 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the month. Primare Corporation Schedule of Cost of Goods Manufactured Manufacturing overhead cost Direct materials: Total raw materials available Raw materials used in production Direct materials used in production $ Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured %24
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.
Cost of goods sold are the total cost on the goods which are sold during the year or in other words, we can say total cost of goods that are sold during the year. Cost of goods sold is calculated by adding opening inventory and purchase during the year and deduct closing inventory.
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