Problem 4: COGM

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

Purchase of raw materials	$30,000
Indirect materials used in production	$5,000
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

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.