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
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.
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