Data analysis, manufacturing statement, cost terminology O'Reilly Manufacturing, Inc.'s cost of goods sold for the month...
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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 infor- mation pertaining to O'Reilly's inventories and production for the month of July is as follows: Beginning inventories, July 1: $ 20,000 Direct materials 40,000 Work in process .... 102,000 Finished goods ....... 110,000 Purchases of direct materials during July Ending inventories, July 31: 26,000 Direct materials ..... Work in process ...... 105,000 Finished goods 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 appropri- ate 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, 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 infor- mation pertaining to O'Reilly's inventories and production for the month of July is as follows: Beginning inventories, July 1: $ 20,000 Direct materials 40,000 Work in process .... 102,000 Finished goods ....... 110,000 Purchases of direct materials during July Ending inventories, July 31: 26,000 Direct materials ..... Work in process ...... 105,000 Finished goods 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 appropri- ate 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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In the given problem one works backward from the cost of goods sold towards calculating direct labor and factory overhead cost Using tile cost of good... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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