Primare corporation has provided the following data concerning last month’s manufacturing operations. purchases of raw materials $ 30,000 indirect materials included in manufacturing overhead $ 4,590 direct labor $ 58,900 manufacturing overhead applied to work in process $ 88,100 underapplied overhead $ 4,030 inventories beginning ending raw materials $ 11,100 $ 19,800 work in process $ 54,300 $ 68,400 finished goods $ 34,300 $ 42,700 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.

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.