Question

Calculator Print item Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 16,400 barrels of oil for purchase in June for $72 per barrel. Direct labor budgeted in the chemical process was $129,900 for June. Factory overhead was budgeted at $212,500 during June. The inventories on June 1 were estimated to be: $9,100 6,100 5,200 Work in process 7,500 The desired Inventories on June 30 were: $10,000 5,600 4,900 Work in process 7,800

Answer 1

Solution

Delaware Chemical Company
Cost of Goods Sold Budget
For the Month Ending June 30
Finished goods inventory, June 1			$ 11,300
Work in process inventory, June 1		$ 7,500
Direct materials:
Direct materials inventory, June 1	$ 9,100
Direct materials purchases	$ 1,180,800
Cost of direct materials available for use	$ 1,189,900
Direct materials inventory, June 30	$ 10,000
Cost of direct materials placed in production	$ 1,179,900
Direct labor	$ 129,900
Factory overhead	$ 212,500
Total manufacturing costs		$ 1,522,300
Total work in process during the period		$ 1,529,800
Work in process inventory, June 30		$ 7,800
Cost of goods manufactured			$ 1,522,000
Cost of finished goods available for sale			$ 1,533,300
Finished goods inventory, June 30			$ 10,500
Cost of goods sold			$ 1,522,800