Question

108 Chapter 22 Budgeting EX 22-16 Cost of goods sold budget OB). Cost of goods sold, 293,600 $15,500 Excel 25,400 Oil P1. P2.. Work in process 22,900 3,400 The desired inventories on June 30 were: Oil P1. P2. Work in process $16,100 28,500 25,000 4,000 Use the preceding information to prepare a cost of goods sold budget for June OBL.4 of goods sold, EX 22-17 Cost of goods sold budget The controller of Ming Ware Ceramics Inc. wants to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the Wilmington Chemical Company uses oil to produce two types of plastic products, Pl and P2. Wilmington budgeted 50,000 barrels of oil for purchase in June for $50 per barrel. was budgeted $500,000 during June. The inventories on June 1 were estimated to be. Direct labor budgeted in the chemical process was $300,000 for June. Factory overhead

Can you show me the formula or equation to get the right answer. EX 22-16

Answer 1

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Wilmington
Cost of goods sold statement	Amount $	Amount $	Amount $
Work in process inventory, June 1			3,400.00
Cost of direct materials used in production
Materials inventory, Jun 1	15,500.00
Raw material Purchases (50000*50)	2,500,000.00
Cost of materials available for use	2,515,500.00
Less: Materials inventory, Jun 30	(16,100.00)
Cost of direct materials used in production		2,499,400.00
Direct Labor		300,000.00
Manufacturing Overhead		500,000.00
Total Manufacturing costs incurred			3,299,400.00
Total cost of work in process			3,302,800.00
Less: Work in process inventory, Jun 30			(4,000.00)
Cost of goods manufactured			3,298,800.00
Add: Finished goods inventory, Jun 1
P 1		25,400.00
P 2		22,900.00	48,300.00
Cost of goods available for sale			3,347,100.00
Less: Finished goods inventory, Jun 30
P 1		28,500.00
P 2		25,000.00	53,500.00
Cost of goods sold			3,293,600.00