Data analysis, manufacturing statement, cost terminology O’Reilly Manufacturing, Inc.’s cost of goods sold for the month ended July 31 was $345,000. The ending work in process inven- tory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. Other information pertaining to O’Reilly’s inventories and production for the month of July is as follows: Beginning inventories, July 1: Direct materials ................................................. $ 20,000 Work in process ................................................ 40,000 Finished goods . . ............................................... 102,000 Purchases of direct materials during July . . . . . . . ................... 110,000 Ending inventories, July 31: Direct materials ................................................. 26,000 Work in process ................................................ ? Finished goods . . ............................................... 105,000 Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
Data analysis,
O’Reilly Manufacturing, Inc.’s cost of goods sold for the month ended July 31 was $345,000. The ending work in process inven-
tory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. Other information pertaining to O’Reilly’s inventories and production for the month of July is as follows:
Beginning inventories, July 1:
Direct materials ................................................. $ 20,000
Work in process ................................................ 40,000
Finished goods . . ............................................... 102,000
Purchases of direct materials during July . . . . . . . ................... 110,000
Ending inventories, July 31:
Direct materials ................................................. 26,000
Work in process ................................................ ?
Finished goods . . ............................................... 105,000
Required:
1. Prepare a statement of cost of goods manufactured for the
month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
2. Prepare a schedule to compute the prime cost incurred during July.
3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)