Parmitan Corporation has provided the following data concerning last month’s manufacturing

Exercise 3-6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO6]

Parmitan Corporation has provided the following data concerning last month’s manufacturing operations.

Purchases of raw materials	$	53,000
Indirect materials included in manufacturing overhead	$	8,000
Direct labor	$	62,000
Manufacturing overhead applied to work in process	$	41,000
Underapplied overhead	$	8,000

Inventories	Beginning		Ending
Raw materials	$	24,000	$	6,000
Work in process	$	41,000	$	38,000
Finished goods	$	86,000	$	93,000

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

   

Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning	$ 24,000
Add  : Purchases of raw materials	53,000
Total raw materials available	77,000
Deduct  : Raw materials inventory, ending	6,000
Raw materials used in production	71,000
Deduct  : Indirect materials included in manufacturing overhead	8,000	$ 63,000
Direct labor		62,000
Manufacturing overhead applied to work in process inventory		41,000
Total manufacturing cost		166,000
Add  : Beginning work in process inventory		41,000
		207,000
Deduct  : Ending work in process inventory		38,000
Cost of goods manufactured		$ 169,000

   

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

   

Schedule of Cost of Goods Sold
Finished goods inventory, beginning	$ 86,000
Add  : Cost of goods manufactured	169,000
Cost of goods available for sale	255,000
Deduct  : Finished goods inventory, ending	93,000
Unadjusted cost of goods sold	162,000
Add  : Underapplied overhead	8,000
Adjusted cost of goods sold	$ 170,000