P1-6 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 inventory 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,
- Direct materials. $ 20,000
- Work in process 40,000
- Finished goods102,000
- 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.
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.