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, 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.

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.